OJK Finalizes Regulations on Insurance Product Business Lines

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has announced the latest developments regarding the draft Regulation of Members of the Board of Commissioners (Peraturan Anggota Dewan Komisioner – “PADK”) on Business Activities and Business Lines of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (collectively referred to as “Companies”) Based on Insurance Company Groupings by Equity (Kelompok Perusahaan Perasuransian Berdasarkan Ekuitas – “KPPE”).

Previously, this draft regulation was referred to as the Draft Circular Letter of OJK on Business Activities and Business Lines of Companies Based on KPPE (“RSEOJK on Business Lines and KPPE”). This regulatory instrument is mandated under OJK Regulation No. 69/POJK.05/2016 , as amended by OJK Regulation No. 36 of 2024 (collectively referred to as “POJK 69/2016”).

“This PADK is expected to provide clear and uniform guidance on business lines for insurance products marketed by insurance companies,” said Ogi Prastomiyono, Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at OJK, to Hukumonline.

Moreover, OJK is currently conducting an in-depth analysis of the business plans submitted by the insurance industry. In general, the financial services regulator remains confident that the insurance industry will continue to experience positive growth in 2026.

“Meanwhile, the PADK relating to limitations on activities based on KPPE will be regulated at a later stage,” he added