Insurance firms’ financial situation has started to be impacted by the adoption of PSAK 117 and PSAK 109

[Bahasa Indonesia]

Bisnis.com, Jakarta, April 3, 2025.

The implementation of PSAK 117 and PSAK 109 has begun to impact the asset, liability, and equity positions of insurance companies in Indonesia. The Financial Services Authority (OJK) recorded a decrease in insurance company assets of 1% to 4%, an increase in liabilities of 2% to 5%, and a decrease in equity of 5% to 8%. However, this condition is still considered safe, supported by insurance companies’ raised capital ratios, which remain above the minimum threshold of 120%.

The Indonesian Insurance Council (DAI) acknowledges that the insurance industry is currently facing significant pressure, ranging from rising claims to the need to adapt to a number of new regulations. The implementation of the new OJK regulations is encouraging companies to move quickly to adapt. For companies with limited resources, this process can be particularly challenging.