Heaptalk, Jakarta — Following the recent Tapera announcement, Indonesia’s government reportedly obliged car and motorbike insurance in January 2025. However, Indonesia’s President Joko ‘Jokowi’ Widodo stated that there has not been any meeting related to the mandatory third-party liability (TPL) insurance for cars and motorbikes for next year.
This plan was issued by the Financial Services Authority (OJK), which intends to mandate all operating vehicles to be included in TPL insurance starting in 2025. “There has been no meeting about that,” Jokowi said after the launch of the Golden Visa at the Ritz Carlton, South Jakarta. (07/25)
Aligned with President Jokowi’s statement, Coordinating Minister for Economic Affairs, Airlangga Hartarto, delivered that the government has not yet discussed a Government Regulation (PP) as an implementation rule to formalize the proposal.
“We have not discussed the vehicle insurance further yet,” Airlangga affirmed.
As previously reported, the OJK stated that the government could establish a mandatory insurance program according to needs based on Law Number 4 of 2023 regarding the Strengthening and Development of the Financial Services Sector (UU P2SK).
For this reason, the scope of the mandatory insurance program is not only related to third-party liability (TPL) insurance for traffic accidents. Still, it can also cover other areas per government policy, considering the community’s needs.
Furthermore, the regulations will be stipulated in a government regulation (PP), which must be issued no later than two years after the UU P2SK. In other words, the PP for this mandatory insurance regulation is projected to be issued on January 12, 2025.
Given that the UU P2SK was established on January 12, 2023, OJK’s Chief Executive of Insurance Supervision, Guarantee, and Pension Funds, Ogi Prastomiyono, stated that initially, the PP regarding the Mandatory Insurance Program would focus on third-party liability insurance for motor vehicles.
