Jakarta (ANTARA) – President Joko Widodo (Jokowi) has clarified that the government has not yet held discussions concerning the Financial Services Authority’s (OJK) plan to introduce mandatory insurance for motorized vehicles in 2025. “There has been no meeting regarding that issue,” he stated briefly on Thursday following the Golden Visa Grand Launch event in Jakarta.
The OJK previously announced that this Mandatory Insurance Program, which encompasses vehicle insurance, is contingent upon the issuance of government regulations (PP). These regulations will provide the necessary legal framework for its implementation, clarifying aspects such as the program’s scope and effective dates.
On July 18th, Ogi Prastomiyono, the Chief Executive Supervisor for Insurance, Guarantee, and Pension Funds at OJK, explained the rationale behind the initiative. “The third-party liability Mandatory Insurance Program related to traffic accidents is intended to provide better financial protection to the public,”
Prastomiyono believes that this program will reduce the financial strain on vehicle owners post-accident and potentially foster improved driving behavior in the long term. He highlighted that enhanced risk protection would increase public safety and confidence, thereby positively impacting economic development.
Law Number 4 of 2023, also known as the Development and Strengthening of the Financial Sector (UU P2SK), provides the legislative basis allowing the government to establish a Mandatory Insurance Program based on societal needs. This includes third-party liability insurance for all motor vehicles involved in traffic accidents, fire insurance, and homeowner’s insurance, designed to provide protection against natural disaster risks.
Industry Minister Agus Gumiwang Kartasasmita also commented on the proposed mandatory insurance policy for motorized vehicles. He emphasized the importance of the entire ecosystem, including financial institutions that provide insurance, in supporting the growth of Indonesia’s automotive sector. “To improve the automotive industry, the entire ecosystem must play a role, including insurance finance,” he said at the opening of the 2024 Gaikindo Indonesia International Auto Show (GIIAS) held at ICE BSD, Tangerang, Banten, on July 18.
