OJK Pushes for Travel Insurance Obligation to Boost Tourism Protection in Indonesia, Here’s All You Need to Know

Published on December 28, 2025

Reporting what could be a major influence on international tourists visiting Indonesia, the Financial Service Authority (OJK) has shown their support for the compulsory execution of travel insurance for foreigners visiting Indonesia. This move is to ensure that tourists have greater protection against risk and to further develop the market for insurance. There are, however, complexities involved in this process.

OJK’s Vision for Travel Insurance

The idea of mandatory travel insurance for foreign tourists has been a topic of discussion for some time. Ogi Prastomiyono, Head of the Insurance, Guarantee, and Pension Fund Supervisory Board at OJK, expressed strong support for the policy, highlighting the dual benefits of enhanced protection for visitors and growth opportunities for the insurance sector. According to Ogi, this initiative can serve as a catalyst for innovation in the travel insurance market, stimulating the creation of new products tailored to the needs of international tourists.

Ogi explained that the move aims to provide foreign tourists with better protection against potential risks during their travels, such as accidents, health emergencies, or unexpected cancellations. While the policy’s full implementation is still under review, the OJK is optimistic about its potential positive impact on both the tourism and insurance industries.

A Cross-Sector Approach: Coordination with Multiple Agencies

Although OJK supports the idea of mandatory travel insurance, the policy requires careful coordination with multiple ministries and agencies. This includes the Ministry of Tourism and Creative Economy, the Ministry of Immigration, and other relevant bodies responsible for overseeing travel and tourism operations in Indonesia.

Implementing such a policy is complex, and it requires addressing a range of practical challenges. For example, determining how the insurance requirement will be enforced, what level of coverage will be deemed adequate, and ensuring that foreign tourists are fully informed about the necessity of obtaining insurance before entering the country. Furthermore, the OJK recognizes that consumer protection will need to be a central focus of any policy designed to ensure tourists are not overburdened with excessive costs or misled by poorly structured insurance plans.

In his statement, Ogi emphasized the importance of further study to determine the readiness of the ecosystem and the mechanisms necessary for the policy’s success. “We need to consider the implementation mechanism, consumer protection aspects, and the readiness of the industry to ensure that the policy is effective and sustainable,” he stated.

Boosting the Insurance Market Through Travel Insurance

The introduction of mandatory travel insurance for foreign tourists could also provide a much-needed boost to the Indonesian insurance sector. By expanding the customer base to include foreign travelers, insurance companies would gain access to a broader market. Additionally, this move would encourage the development of specialized insurance products, such as short-term travel plans tailored to foreign tourists.

Data from the OJK, as of October 2025, reveals that life insurance premiums continue to show positive growth. Individual life insurance premiums amounted to IDR 78.87 trillion, an increase of 6.58% year-on-year (YoY), while the group segment saw a rise of 1.97% YoY, totaling IDR 21.70 trillion. These figures highlight that despite the broader market dynamics, demand for life protection products remains stable, offering a solid foundation for the growth of travel insurance.

Furthermore, the overall investment results in the life insurance industry are encouraging. As of October 2025, investments reached IDR 42.15 trillion, a growth of 60.43% YoY. Similarly, investments in the general insurance and reinsurance sectors stood at IDR 8.36 trillion, marking an increase of 15.96% YoY. These statistics suggest that the Indonesian insurance industry is in a strong position to accommodate an influx of new products catering to the needs of foreign tourists.

Impact on Tourism: A Positive or Negative Change?

The introduction of mandatory travel insurance could have a mixed impact on foreign tourism in Indonesia. On one hand, it will offer tourists greater peace of mind, knowing that they have coverage in case of emergencies during their stay. Health care costs and unforeseen events, such as accidents or trip cancellations, can be financially devastating without proper insurance, and requiring foreign tourists to purchase insurance would help mitigate these risks.

However, the requirement for travel insurance could also create additional barriers to entry for some travelers, particularly those who may not be accustomed to such obligations in their home countries. Tourists from regions with no widespread travel insurance culture, such as certain parts of Europe and Asia, may find this policy to be an inconvenience or unnecessary expense. This could deter some individuals from traveling to Indonesia or create friction during the visa application process.

The OJK has acknowledged the need for careful planning in this regard. It is essential to ensure that tourists fully understand the benefits of travel insurance and are not left feeling overwhelmed or confused by the new requirement. Clear communication and partnerships between insurance providers and tourism authorities will be crucial in ensuring that the policy is perceived as a positive development rather than an obstacle.

Looking to the Future: Positive Growth in Insurance Investments

Ogi Prastomiyono also provided insights into the future of the insurance industry in Indonesia, emphasizing the positive growth potential in the coming years. He noted that the conservative structure of the industry’s investment portfolios, which are largely focused on liquid and low-risk instruments such as government securities, provides a solid foundation for growth.

With an increase in the demand for life insurance and a broader customer base through the inclusion of foreign tourists, the prospects for the industry look promising. The OJK expects continued healthy growth and robust returns from the insurance sector in the next year.

A Strategic Move for Indonesia’s Tourism and Insurance Sectors

The proposed government policy of making travel insurance compulsory for foreign tourists may go a long way in improving the risk cover of foreign visitors arriving in Indonesia. Although the implementation of the proposed policy would require cooperation between different government departments and planning, the opportunity presented by the proposed policy may help increase both the tourism industry and the insurance industry in Indonesia, and could act as a precedent for other countries as well.