OJK Strengthens the Legal Basis for Regulation of Unit-Linked Insurance Products

The Finnacial Services Authority (“OJK”) is currently formulating a number of strategic policies to strengthen the Financing Company, Pension Fund, and Guarantee sectors (Perusahaan Pembiayaan, Dana Pensiun, dan Penjaminan - “PPDP”). One of these efforts is being carried out through the refinement of regulations on Investment-Linked Insurance Products (Produk Asuransi yang Dikaitkan dengan Investasi - “PAYDI”), also known as unit-link.

“The OJK is currently reviewing several policies and regulations that are scheduled to be issued in 2026, with a focus on strengthening governance aspects and enhancing risk-based supervision,” said Ogi Prastomiyono, Chief Executive of the Insurance, Guarantee, and Pension Fund Supervision at the OJK.

The provisions on unit-linked insurance products were previously regulated under OJK Circular No. 5/SEOJK.05/2022 on PAYDI, as partially revoked by Regulation of the Financial Services Authority’s Board of Commissioners No. 37/PADK.08/2025 on the Provision and Delivery of Information for the Marketing of Financial Products and Services (“SEOJK 5/2022”).

This is in line with the 2026–2030 Roadmap for the Development of Sustainable Finance in the PPDP sector, which aims to align the industry’s direction with major global agendas, namely Net Zero Emission (“NZE”) and the Sustainable Development Goals (“SDGs”).

“Going forward, the provisions on unit-linked insurance products, which were previously regulated under SEOJK 5/2022, are planned to be elevated to the level of an OJK Regulation (POJK),” he added.