The Indonesian government set a 80 percent cap on foreign ownership in Indonesian insurance companies through Government Regulation No. 14/2018 on Foreign Ownership of Insurance Companies. Suahasil Nazara, Fiscal Policy Head at Indonesia's Finance Ministry, said foreigners can remain controlling a big stake (up to 80 percent) in the domestic insurance industry because it is believed that domestic insurance players still need the knowledge and capital that strategic foreign investors bring from abroad.

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Indonesian parliament (DPR) decided not to limit foreign ownership in Indonesian insurance companies. Currently, foreigners can have an 80 percent stake in a local insurance company. A new insurance bill on this matter is expected to be passed in a plenary session next month. This bill will enable foreign investors to continue to own local insurance companies through the share-purchase mechanism at the Indonesia stock exchange (IDX). Another important point in the new bill involves the legal entity of the local insurance firm.

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