Indonesia’s Travel Insurance Push for Foreign Tourists: Strengthening Traveller Protection and Boosting Sector Growth

Published on November 27, 2025

A proposal to mandate that foreign visitors obtain travel insurance prior to entering the nation is being investigated by Indonesia. The goal of this initiative, which is being led by the Indonesian Insurance Council (Dewan Asuransi Indonesia, or DAI), is to boost the country’s expanding insurance sector while simultaneously enhancing traveller protection. Yulius Bhayangkara, the DAI’s chairman, has disclosed that the council is actively pressuring the Indonesian government to enact a law requiring foreign visitors to buy travel insurance. This concept is viewed as a means of safeguarding visitors in the event of mishaps or emergencies while guaranteeing that the local insurance industry gains from higher policy sales.

Strengthening Protection for Travelers

The initiative to require travel insurance for foreign visitors to Indonesia is still in its early planning stages. According to Bhayangkara, the DAI is exploring the feasibility of setting up insurance booths at the Visa on Arrival (VoA) sections of Indonesian airports. These booths would allow tourists to conveniently purchase insurance as soon as they land. Bhayangkara has noted that the move would mirror the practice many Indonesian citizens follow when travelling abroad, where purchasing travel insurance is a standard requirement.

This proposal reflects a growing global trend where countries are prioritizing the protection of travelers. The Indonesian government’s support of this initiative could significantly enhance safety for international visitors, ensuring they are covered in case of unforeseen medical emergencies, trip cancellations, or other travel-related disruptions. While the details of the plan are still being worked out, the goal is to provide tourists with a seamless way to purchase insurance upon arrival, ensuring they are adequately protected during their stay in the country.

Coordination with Stakeholders

The Indonesian Insurance Council is not acting alone in this effort. There is active collaboration with various stakeholders, including regulators and lawmakers. The Financial Services Authority (Otoritas Jasa Keuangan or OJK) has also been involved in discussions regarding the potential rollout of this initiative. The role of the OJK is crucial in setting the regulatory framework that would govern the new requirement, ensuring that it complies with Indonesia’s broader financial and insurance regulations.

Several insurance companies are already preparing for the growth in travel insurance policies that could arise from such a proposal. Among them, Zurich Indonesia has shown a notable interest in the expansion of the travel insurance market. The company, through its subsidiaries PT Zurich Asuransi Indonesia (ZAI) and PT Zurich General Takaful Indonesia (Zurich Syariah), has been focusing on digitising its services. This digital push has made it easier for customers to access insurance products, which could be a significant advantage if travel insurance becomes mandatory for foreign tourists.

A Growing Market for Travel Insurance

The Indonesian travel insurance market has already been witnessing positive growth. Zurich Indonesia’s Country Manager, Edhi Tjahja Negara, has indicated that the company expects double-digit growth in the travel insurance sector next year. This growth is in line with the overall trends observed in the Indonesian insurance market, where travel-related policies have become increasingly popular. According to official data from Statistics Indonesia, transport insurance has seen an increase of 8.62% in 2025, reflecting the growing awareness and need for travel protection among the Indonesian population.

The demand for travel insurance is also expected to surge during peak travel seasons, such as the Christmas and New Year holidays. The Indonesian General Insurance Association (AAUI) has predicted that the demand for travel insurance will rise during this period, as more people plan vacations, often purchasing travel insurance either through travel agents or directly from insurers. This seasonal spike could further fuel the growth of the insurance sector, positioning it as a key player in Indonesia’s tourism industry.

Potential Challenges and Future Growth

While the initiative to introduce mandatory travel insurance for foreign tourists has been met with positive support from the industry, there are still some hurdles to overcome. The plan is still in the preliminary stages, and detailed testing and regulatory approvals are required before it can be implemented. One of the main challenges is ensuring that the insurance products offered meet the diverse needs of international travelers, who may have varying preferences for coverage based on their travel habits and countries of origin.

Furthermore, the logistics of setting up insurance booths at the Visa on Arrival sections of airports could pose some practical challenges. The Indonesian government and the DAI would need to ensure that these booths are staffed adequately and that tourists have enough time to consider their insurance options before proceeding with immigration checks. The integration of this system into the existing travel process will need to be smooth to avoid delays and confusion at airports, particularly during busy travel periods.

Despite these challenges, the initiative holds significant potential for Indonesia’s insurance industry. With the increasing number of international tourists visiting Indonesia each year, mandatory travel insurance could become a valuable tool for expanding the market. This growth could also contribute to the broader economic development of the country, supporting both the tourism and insurance sectors.

Conclusion

An important development for the travel and insurance industries is Indonesia’s push to make travel insurance mandatory for foreign visitors. This policy could greatly improve traveller protection if it is put into effect, guaranteeing that visitors are protected while they are in the nation. In addition, it offers Indonesia’s insurance industry a rare chance to expand due to the rising demand for travel-related insurance. The cooperation between the DAI, the Indonesian government, and the private sector shows encouraging signs of progress, even though the proposal is still in its early stages. If it is successful, it could act as a template for other nations wishing to incorporate insurance requirements into their travel policies, further guaranteeing foreign tourists’ safety and security.