OJK Backs Mandatory Travel Insurance for Foreign Tourists

JAKARTA, Investortrust.id — Indonesia’s Financial Services Authority on Friday, Dec 26, 2025 in Jakarta expressed support for a proposal requiring foreign tourists to hold travel insurance when visiting the country, a move aimed at strengthening risk protection while expanding the domestic insurance market. The policy idea is expected to require cross-sector coordination before any formal implementation.

Otoritas Jasa Keuangan said it supported the proposal in principle because it could enhance protection for visitors while encouraging product development through market expansion. “OJK basically supports this idea because it can strengthen risk protection for tourists while also promoting insurance product development through market extensification,” said Ogi Prastomiyono in a written response to the November 2025 Monthly Board of Commissioners Meeting.

However, Ogi stressed that mandatory travel insurance for foreign visitors would be a cross-sector policy requiring coordination with relevant ministries and agencies. “This requires coordination with related ministries and institutions, particularly in the tourism and immigration sectors,” he said.

He added that further assessment was needed before implementation, including evaluation of ecosystem readiness, operational mechanisms, and consumer protection aspects. The goal, he said, was to ensure the policy could be applied effectively and sustainably.

The insurance industry, through the Indonesian Insurance Council, has been actively pushing the idea, drawing inspiration from similar requirements applied in the Schengen Area. The proposal is seen as a way to formalize protection for travelers while broadening insurance penetration.

Indonesian Insurance Council chairman Yulius Bhayangkara said the concept could be implemented through insurance booths at Visa on Arrival service points. “This is still at the planning stage and needs further testing,” he said.

Discussions on mandatory travel insurance have also begun at the regional level, including during the ASEAN Insurance Council Meeting 2025 in Siem Reap, Cambodia. The early talks reflect growing regional interest in standardizing tourist protection measures.