TEMPO.CO, Jakarta - Chief Executive of Non-bank Financial Industry Inspector, the Financial Service Authority (OJK), Firdaus Djaelani said that Indonesia’s insurance industry is strong and unaffected by current economic crisis. Economic turmoil and dynamics have also not had major impacts on the balance of the industry.
The latest event of British Exit (Brexit) has not affected the growth of insurance industry. “Every year, insurance industry has not realy been vulnerable to crisis. We heard that Brexit have not made impact [on the industry],” Firdaus said in Balai Kartini, Jakarta, Wednesday, June 29, 2016.
Earlier, the UK has voted to leave the European Union after 43 years of membership, by 52 percent to 48 percent, on Friday. The decision has sparked turmoil in global economy.
Firdaus noted that his side continues to monitor the development of insurance industry. According to him, the resilience of insurance industry is much better compared to that of other financial industry, such as banking and multifinance. “We have experienced crisis in 1998 and 2008, insurance industry has kept growing,” he said.
Therefore, the OJK continues to make commitment and efforts to familiarize insurance industry to the general public. “The [country’s] development must be supported by insurance to protect the people in their daily activities,” Firdaus said.
In addition, special treatment is needed to improve supply and demand, among others, by implementing inclusive finance and financial information mapping. There are also special steps to make policy, protect consumers and strengthen insfrastructure of financial literacy.
OJK noted that insurance industry assets reached Rp866.61 trillion in the first quarter of 2016, rose by 10 percent compared to that of same period of Rp787.56 trillion.
GHOIDA RAHMAH
