Indonesian insurance firms face equity and spin-off deadlines

Indonesian insurance and reinsurance companies are working to meet minimum equity requirements set by the Financial Services Authority (OJK) by the end of 2026. According to OJK data from August 2026, 117 out of 147 companies have already met these standards, leaving 30 firms still needing to fulfill the requirements.

Yulius Bhayangkara, Chairman of the Indonesian Insurance and Reinsurance Brokers Association (APPARINDO), noted that organic growth may be insufficient to meet these capital needs. He suggested that companies must optimize capital injection strategies through existing shareholders or new investors. While optimistic that most will survive, he acknowledged that some firms may be forced to return their business licenses to the OJK if they fail to comply.

In a separate regulatory move, the OJK is requiring insurance companies to spin off their Sharia Business Units (UUS) by the end of 2026. OJK Executive Ogi Prastomiyono projected that this will result in 38 full-fledged Sharia insurance and reinsurance companies. While the spin-off is expected to increase the demand for qualified actuaries, the OJK currently views the impact on professional competition as minimal, as companies may utilize shared services or existing personnel from parent organizations.