Foreign Ownership to be Limited in Insurance Industry
23 August 2014 07:22 WIB
TEMPO.CO, Jakarta - The Financial Service Authority (OJK) will curb foreign ownership in the insurance business to amplify domestic insurance companies, the OJK’s deputy commissioner for the non-banking industry, Ngalim Sawega, said on Thursday, August 21, 2014.
“However, the Finance Minister’s Regulation states that the maximum foreign shares allowed are still at 80 percent,” Ngalim said, adding that the OJK is pursuing to limit foreign ownership to 49 percent.
Adira Insurance president director Indra Baruna said the policy should be subject to in-depth evaluation, and that domestic insurance companies should own the majority of the national market share.
“However, the move must not conflict with the ASEAN Economic Community plans,” Indra said, adding that one of the goals of the AEC was investment sans limitations.
Indra considered the current regulation did not necessarily affect his company’s performance. In the insurance industry, local companies are leading the market share despite foreign insurance companies' competing with the local ones over the past few years. Indra claimed Adira was ready to compete with foreign companies when facing the MEA.
FAIZ NASHRILLAH
