Indonesia Insurance Guide

OJK is Indonesia's independent financial services regulator, overseeing banking, capital markets, and non-bank financial industries including insurance. Established by Law No. 21 of 2011, OJK took over insurance supervision from the Ministry of Finance.

It sets and enforces regulations to ensure insurers comply with laws and protect policyholders. OJK is also empowered by the 2023 Financial Sector Reform Law (UU No.4/2023 P2SK) to implement compulsory insurance programs for certain risks.

The primary law governing insurance is Law No. 40/2014 (Insurance Law), which defines insurance business and 'compulsory insurance programs' mandated by Indonesian law. OJK also issues sector regulations (POJK) such as POJK No. 1/2019 on microinsurance and recent rules under the P2SK law requiring certain mandatory coverages.

BPJS Ketenagakerjaan (also called BPJAMSOSTEK) is Indonesia's Social Security Administering Body for employment. It manages mandatory insurance schemes for workers: work accident insurance, death benefits, old-age savings, pensions, and since 2022, unemployment benefits.

All employers in Indonesia must register their employees with BPJS Ketenagakerjaan and contribute premiums as required by law. Law No. 24/2011 and the National Social Security System Law (No. 40/2004) require every employer to enroll workers in BPJS programs.

Government Regulation No. 86 of 2013 details administrative sanctions for employers who fail to register employees for social security. In practice, every company with even one employee is obligated to register and pay into BPJS Ketenagakerjaan.

BPJS Kesehatan is the Social Security Administering Body for health, running Indonesia's National Health Insurance program (Jaminan Kesehatan Nasional, JKN). It is mandatory for all residents (Indonesian citizens and foreigners working >6 months) to be members of BPJS Kesehatan.

Employers must register their employees and contribute to monthly health insurance premiums, ensuring universal health coverage. Under Article 14 of Law No. 24/2011, every Indonesian and every foreign worker in Indonesia (≥6 months) is required to join the national health insurance program.

Presidential Directive No. 11/2022 instructs that access to certain public services (including business permits) requires proof of BPJS Kesehatan participation. Employers can find plain Bahasa guides on how to register their company on the BPJS Kesehatan website.

The Ministry of Manpower of Indonesia (Kementerian Ketenagakerjaan, often Kemnaker) is the government authority enforcing labor laws and worker protections. This includes ensuring that employers comply with mandatory insurance/social security for their employees.

The Manpower Law (Law No. 13/2003, amended by the 2020 Job Creation Law) stipulates that employers must provide social security for workers. Kemnaker, through Government Regulation No. 86/2013, can enforce administrative sanctions on companies that fail to register workers in the BPJS system.

Sanctions include written warnings, fines, and even suspension of certain business services for persistent violators. To obtain many business licenses or permits, an SME must show proof of BPJS participation, a policy coordinated by Kemnaker and other agencies.

The Ministry of Transportation (Kementerian Perhubungan) oversees regulations requiring certain insurance in the transport sector. Chief among these is mandatory motor vehicle and passenger accident insurance.

PT Jasa Raharja is designated by the government to provide basic coverage for traffic accidents. Two key laws from 1964 underpin this: Law No. 33/1964 requires a 'Dana Pertanggungan Wajib Kecelakaan Penumpang' – a compulsory insurance fund for public transportation passengers, and Law No. 34/1964 mandates insurance for road traffic accidents involving third-party victims.

Every car, motorbike, bus, or other vehicle in Indonesia contributes to an accident insurance fund (often through vehicle tax/registration fees), and Jasa Raharja provides compensation to victims of traffic crashes or passengers of public transit.

Online Single Submission (OSS) is the national one-stop system for business registration. When an SME registers for an NIB (Nomor Induk Berusaha), OSS streamlines related compliance including tax ID and BPJS enrollment. Proof of registration with BPJS Ketenagakerjaan and BPJS Kesehatan is required as part of obtaining an NIB/business license.

Indonesia.go.id offers plain-language articles on starting and running a business. It has guides on 'Perizinan Berusaha Melalui OSS' that explain the need for BPJS registration when opening a business. It also covers topics like how employees must be registered for health and employment insurance.

Many local governments have PTSP (Pelayanan Terpadu Satu Pintu) offices or SME service centers that guide new businesses. They often use checklists derived from national rules – invariably including registering employees with BPJS and ensuring any sectoral insurance (like Jasa Raharja for vehicles) is addressed.