In March 2022, Indonesia's Financial Services Authority (OJK) issued circular letter “No. 5/SEOJK.05/2022” (SEOJK 05/2022) on investment-linked products (ILPs). Since then, industry-wide new business ILP sales have declined, driven by several factors, including negative consumer sentiment towards ILPs.
To support the future sustainability of ILPs in the Indonesian market, in August 2026 the Insurance, Guarantee and Pension Fund Supervision arm of the OJK issued a draft OJK regulation (RPOJK) on ILPs, outlining proposed changes for industry feedback. Other than the provisions that are explicitly proposed to be amended or revoked by the RPOJK, the provisions of SEOJK 05/2022 would remain effective. In addition to these regulations, ILP sales processes and materials must also comply with the general regulations on financial products and services issued under OJK’s consumer protection framework.
Key changes proposed in the RPOJK include the following.
- The proposed minimum core capital requirements for insurers selling ILPs before and after year-end 2028.
- Sustainability testing: A proposal to clarify that the periodic evaluation of premium/contribution sufficiency must be carried out annually.
- Sales process: A proposal to formally revoke the requirement for face-to-face ILP sales processes to be documented through video and/or audio recordings.
- Sub-fund investments: Summary of proposed permitted investments.