Indonesia Financial Services Authority briefs OECD accession mission on insurance and pension reforms including policyholder guarantee and new solvency framework

The Indonesia Financial Services Authority said officials from the Organisation for Economic Co-operation and Development, visiting Jakarta for a fact-finding mission on insurance and pensions as part of Indonesia's OECD accession process, praised the country's reform agenda in both sectors. The authority used the visit to set out reforms aimed at strengthening consumer protection and financial resilience, centred on a Policyholder Guarantee Program, adoption of IFRS 17 through PSAK 117, a new risk-based solvency framework, stronger actuarial capacity, and wider use of artificial intelligence and digital tools in supervision. A key priority is the Policyholder Guarantee Program under the 2023 Law on Financial Sector Development and Strengthening. The authority added that a revision to that law approved by parliament on 4 June 2026 further strengthens the resolution and liquidation framework for insurers as part of the program's implementation. It also pointed to current sector metrics, with risk-based capital at 476.11 percent for life insurers and 311.74 percent for general insurers, while pension fund assets reached IDR 410.14 trillion in April 2026. The mission runs from 5 to 11 June 2026 and includes meetings with the Indonesia Financial Services Authority, the Ministry of Finance, other public bodies, insurers, pension funds, brokers, actuaries, consumer groups and other market participants to examine how policy, regulation and supervision are applied in practice.