OECD Recognizes OJK’s Insurance and Pension Reforms

RRI.CO.ID, Jakarta - The Indonesian Financial Services Authority (OJK) has received recognition from the Organization for Economic Co-operation and Development (OECD) for reforms in the insurance and pension fund sectors. These reforms are considered to have strengthened the financial sector’s resilience and enhanced consumer protection.

The recognition was conveyed during the OECD’s Fact-Finding Mission on insurance and pension funds, held in Jakarta on Monday, June 8, 2026, as part of Indonesia’s accession process to become a full OECD member.

OECD Head of Insurance and Pensions, Pablo Antolín, noted that Indonesia has implemented several important reforms, including strengthening regulation and supervision and fostering the sustainable development of the insurance and pension fund industries.

He added that the OECD recognizes several strengths in Indonesia’s insurance and pension sectors, including increased financial inclusion, the development of microinsurance, strengthened actuarial capacity, and comprehensive pension fund reforms.

OJK Board of Commissioners Chairperson, Friderica Widyasari Dewi, said Indonesia welcomes the OECD Fact-Finding Mission as a crucial part of the accession process. “We view this process as a strategic opportunity to benchmark against international best practices and accelerate financial sector reforms in Indonesia,” Friderica said.

She explained that the Risk-Based Capital (RBC) ratio for life insurance stood at 476.11 percent, while general insurance reached 311.74 percent. Pension fund assets amounted to IDR 410.14 trillion (approximately USD 22.54 billion) as of April 2026.

OJK’s Executive Director for Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono, stated that OJK is implementing various structural reforms. One of these is the Policy Guarantee Program mandated by the Law on Financial Sector Development and Strengthening (UU P2SK).

Additionally, OJK is promoting the adoption of Financial Accounting Standards Statement 117 (PSAK 117), which incorporates International Financial Reporting Standard 17 (IFRS 17), and developing a risk-based solvency framework, or New-RBC.

The agency is also strengthening actuarial functions and leveraging artificial intelligence (AI) and digital technology in industry supervision.

“In the approved revision of the P2SK Law, the resolution and liquidation framework for insurance companies has been further strengthened. This is an integral part of the implementation of the Policy Guarantee Program by the Deposit Insurance Corporation (LPS),” Ogi said.

Indonesia expects these initiatives to demonstrate progress in reforming the insurance and pension fund sectors. The government also hopes to receive input from the OECD to further strengthen the financial sector’s resilience and consumer protection in the long term. (Gusti Panji)