Financial Services Authority (OJK) Regulation 23/POJK.05/2015 concerning Insurance Products and the Marketing of Insurance Products governs the types of insurance product that can be offered in Indonesia – namely:

  • insurance products that cover one or more of the following risks:
    • losses;
    • damages;
    • incurred costs;
    • lost profits;
    • liabilities to third parties; or
    • failure by the insured to meet its obligations to third parties (ie, suretyship);
  • insurance products that cover death-related risks and life annuity;
  • insurance products that cover one or more risks relating to human health;
  • insurance products that cover one or more accident-related risks;
  • investment-related insurance products;
  • insurance products that cover death-related risks and financial benefits deriving from investments;
  • joint-insurance products;
  • insurance products that are marketed and covered by a minimum of two insurers. This must be set out in an agreement containing, at minimum:
    • the insurers' membership structures;
    • the leader's duty;
    • the risk allocation;
    • the premium and contribution payment procedures;
    • the underwriting and claim settlement procedures; and
    • the dispute settlement procedure;
  • standard insurance products;
  • insurance products that have the same insurance policy as the insurance industry association;
  • micro-insurance products; and
  • insurance products that cover the protection of financial risk for low-income people and are simple, easy, economical and immediate.

Insurance policies

The regulation also includes provisions pertaining to insurance policies. First, an insurance policy must be written in Indonesian and issued in hardcopy or digital or electronic format. Second, the insurance policy must contain, at minimum:

  • an effective insurance period;
  • a description of the benefit;
  • the payment method for premiums and contributions;
  • a grace period for payments;
  • the applicable currency (this must refer to Bank of Indonesia rates);
  • an acknowledged period in which payment will be accepted;
  • the insurers' policy in cases of payment delays;
  • an incontestable period for long-term insurance products;
  • a cash-value table;
  • a dividend calculation;
  • a termination clause;
  • claim submission requirements and procedures;
  • claim settlement and payment procedures;
  • a dispute settlement clause; and
  • the language applicable in the occurrence of a dispute.

Sharia-based insurance policies must also contain:

  • the type of akad (ie, written agreement);
  • the rights and obligations of the parties based on the agreed akad;
  • the contribution amount;
  • the amount, period and payment method of the profit-sharing investment;
  • the allocation of the underwriting's surplus utilisation; and
  • the granting of a qardh (ie, interest-free loan).


Insurers are prohibited from including provisions in insurance policies that explicitly or implicitly imply:

  • that the insurance holder, the insured or a participant cannot undertake legal action (thus, such parties must accept the rejection of a claim payment); and
  • the limitation of legal action by the parties in the event of a dispute arising from the policy's provisions.

Reporting and registration obligations

New insurance products (ie, insurance products marketed after the enactment of the regulation) that will be marketed to the public must be reported to and registered with the OJK in order for the OJK to issue approval and registration letters. Such new insurance products constitute:

  • products that have not been marketed by the relevant insurer; and
  • products that have been marketed, but have been amended in regards to:
    • the insured risks, including the exemption or limitation of risk causations;
    • the premium or contribution formula;
    • the risk categories;
    • assumptions relating to the premium or contribution formula; and
    • the cash-value calculation method.

Marketing methods

Insurance product marketing methods include marketing via:

  • direct marketing (including via remote communication);
  • insurance agents;
  • bancassurance (ie, partnerships with banks, subject to OJK approval); and
  • business entities other than banks (subject to OJK approval).

For micro-insurance products in particular, marketing via sales people is also possible.

Insurance product management

Insurers must prepare development and marketing plans. During the performance of an insurance contract, the insurer must regularly undertake monitoring action by evaluating:

  • the insurance product's embedded value;
  • the insurer's profit testing methods and asset shares;
  • the value of new business.

The results of this monitoring must be documented properly. Further, the OJK may order an insurer to cease its marketing in the event that the insurance product being marketed:

  • differs to that for which the approval and registration letters were granted; or
  • does not comply with the applicable laws and regulations.

In such cases, the insurer must submit a marketing cessation report within 10 days of the cessation date.


An insurer that fails to comply with the regulation may incur administrative penalties. For example:

  • it may receive a written warning;
  • it may incur a fine;
  • its board of directors may have to retake the fit-and-proper test;
  • its business activities may be limited; and
  • its business licence may be revoked.

For further information on this topic please contact Maylanie N Priscilla at Hermawan Juniarto by telephone (+62 21 2995 9057) or email ( The Hermawan Juniarto website can be accessed at

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