Indonesia’s Financial Services Authority (OJK) has formally endorsed a proposal to make travel insurance compulsory for all foreign visitors to the country. The initiative aims to provide effective financial protection against health and safety risks while simultaneously opening new opportunities for innovation within Indonesia’s insurance sector.
Ogi Prastomiono, Head of the Insurance, Guarantee and Pension Fund Supervision Board at OJK, stated in a recent press release: “Mandatory travel insurance for foreign tourists will ensure that, in the event of accidents, sudden medical emergencies, or trip cancellations, visitors receive immediate financial security and support.”
He added, “Before implementing the policy, it is essential to assess the readiness of the broader ecosystem. This involves coordination across the insurance industry, tourism sector, healthcare services, and immigration authorities. Ensuring maximum protection for tourists and consumers is also of utmost importance.”
Analysts highlight that Indonesia attracts millions of international visitors annually. Without reliable financial coverage for unforeseen events such as accidents or emergency medical treatment, tourists could face significant economic burdens, potentially affecting the country’s reputation as a safe and attractive travel destination.
According to OJK, the policy is expected to create new prospects for the domestic insurance market. Insurers will have the opportunity to offer short-term, customised policies tailored to international visitors, covering a range of contingencies such as medical emergencies, accidents, trip cancellations, lost or damaged luggage, and flight delays.
The following table summarises the potential benefits and coverage under the proposed travel insurance policy:
| Type of Coverage | Examples of Coverage | Potential Impact |
|---|---|---|
| Emergency Medical Care | Hospitalisation, surgery | Reduces financial strain |
| Accidents | Injuries sustained during travel | Provides rapid access to care |
| Trip Cancellation | Cancelled or delayed tours | Minimises unexpected expenses |
| Lost or Damaged Luggage | Lost or damaged baggage | Protects travellers’ property |
| Flight Delays | Assistance when flights are delayed | Ensures continuity of travel plans |
Experts stress that successful implementation will require reasonable premium levels, clear minimum coverage standards, and transparent assistance processes. The objective is to ensure that tourists gain genuine benefits, rather than merely fulfilling formalities.
OJK believes that the policy will strengthen Indonesia’s position as a safe, modern, and responsible tourism destination, while also stimulating growth in the country’s insurance sector. Both tourism and financial authorities are currently reviewing the final framework and practical implementation measures to ensure efficiency and transparency.