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Indonesia’s Deposit Insurance Agency Targets 2027 Launch for Insurance Policy Guarantee Scheme

From Republika · () Indonesian

Translated from Indonesian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • Indonesia’s Deposit Insurance Corporation, or LPS, is preparing regulations for a policy guarantee scheme that it aims to activate in 2027.
  • The program still depends on a government regulation and coordination with the Financial Services Authority and the Finance Ministry.
  • Insurance companies would join under specific conditions, including capital adequacy and risk-based capital requirements, rather than automatically as banks do.

Indonesia’s Deposit Insurance Corporation is preparing the rules for a new insurance policy guarantee scheme, with a target of starting the program in 2027. The preparations remain incomplete, and the launch depends on a government regulation and coordination with the Financial Services Authority, known as OJK, and the Finance Ministry.

We are now preparing the PLPS to carry out the registration.

· Anggito AbimanyuThe LPS chairman described the regulation being drafted for insurance companies to register in the guarantee scheme.

LPS Chairman Anggito Abimanyu said the agency is drafting its regulation, known as PLPS, as the basis for registering insurance companies in the scheme. He spoke at a news conference during the Lampung Financial Festival in Bandar Lampung on Friday evening.

Banks are required to be LPS members. Insurance companies are not, because there are requirements.

· Anggito AbimanyuHe explained how insurance-company participation would differ from mandatory bank membership.

Membership would not work in the same way as it does for banks. Banks must join LPS, while insurance companies would need to meet specific requirements before entering the guarantee program. Those conditions would include their capital position and risk-based capital, or RBC, adequacy. LPS is still formulating the detailed requirements.

So we hope it can be activated in 2027. Hopefully, because it is not only up to us. We must reach agreement with OJK in particular, and also with the Finance Ministry as the government.

· Anggito AbimanyuHe linked the 2027 target to coordination with Indonesia’s financial authorities.

Abimanyu said LPS hopes to activate the program in 2027, but stressed that the agency cannot proceed alone. The target deadline for implementation is January 2028 at the latest, although LPS hopes to launch earlier, ideally by the middle of the year.

The final deadline is January 2028. We hope it can be done by the middle of the year.

· Anggito AbimanyuHe gave the latest possible implementation date and said LPS hoped to move faster.
About this summary

Originally published by Republika in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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