Indonesia’s Financial Services Authority (OJK) has announced a landmark decision mandating travel insurance for all foreign visitors entering the country. The initiative aims to provide international travellers with financial protection against health emergencies, accidents, and travel-related risks while simultaneously fostering innovation and growth within Indonesia’s domestic insurance sector.
Ogi Prastomiano, Head of OJK’s Board for Insurance, Guarantee, and Pension Fund Supervision, emphasised in a press release: “By making travel insurance compulsory for foreign tourists, we ensure immediate financial support and protection in cases of accidents, unexpected medical emergencies, or trip cancellations.” He added, “Before implementing this policy, it is essential to assess the readiness of the entire ecosystem. Coordination across the insurance sector, tourism industry, healthcare services, and immigration authorities is critical, alongside ensuring maximum protection for both tourists and consumers.”
Analysts highlight that Indonesia welcomes millions of international tourists each year. Without adequate financial safeguards for unforeseen accidents or medical emergencies, visitors may face substantial economic burdens. Such incidents can also harm Indonesia’s reputation as a safe and attractive tourist destination.
According to OJK, the policy is expected to open new opportunities for the domestic insurance market. Providers will have the chance to offer short-term, customised insurance plans for foreign visitors, covering a wide range of risks. The proposed travel insurance coverage includes medical emergencies, accidents, trip cancellations, lost or damaged luggage, and flight delays.
Summary of Proposed Travel Insurance Coverage
| Coverage Type | Examples | Potential Impact |
|---|---|---|
| Emergency Medical Care | Hospitalisation, surgery | Reduces financial strain |
| Accidents | Injuries during travel | Ensures prompt medical attention |
| Trip Cancellation | Cancelled or delayed tours | Minimises unexpected expenses |
| Lost or Damaged Luggage | Misplaced or damaged baggage | Protects tourists’ belongings |
| Flight Delays | Assistance during delays | Maintains continuity of travel plans |
Experts stress that successful implementation will require appropriate premium pricing, clearly defined minimum coverage standards, and transparent support procedures. The objective is to deliver genuine benefits to tourists rather than simply fulfilling formal requirements.
OJK anticipates that the mandatory travel insurance scheme will position Indonesia as a safe, modern, and responsible tourist destination while simultaneously stimulating growth in the domestic insurance market. Tourism and financial authorities are currently reviewing the final framework and implementation procedures to ensure maximum efficiency and transparency.
