Kadin Admits The Important Role Of The Resurance Industry In Encouraging Green Economic Investment In Indonesia

Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid. (Photo: Doc. Antara)

JAKARTA - The Indonesian Chamber of Commerce and Industry (Kadin) recognizes the important role of the reinsurance industry in encouraging green economic investment in Indonesia.

"As a shelter for business and industrial actors in Indonesia, Kadin Indonesia recognizes the important role of the reinsurance industry in promoting sustainability and accelerating the renewable energy transition by providing financial stability, as well as risk mitigation also allows insurance companies to offer wider coverage/coverage to encourage green economic investment," said Chairman of the Indonesian Chamber of Commerce and Industry Arsjad Rasjid in Jakarta, quoted from Antara, Wednesday, July 24.

Arsjad said that through Enhanced Nationally Determined Contributions (ENDC), Indonesia asked for more ambitious steps in efforts to achieve climate targets, namely reducing greenhouse gas emissions by 31.89 percent by 2030 and achieving net zero by 2060 or earlier.

However, there are risks related to transitional efforts to achieve a green and sustainable economy. For example, there are many possible investments with a high level of uncertainty.

These risks are difficult to predict due to historical lack of data.

"This is an insurance industry, including reinsurance companies have a role to take part in this risk and make environmentally friendly investment businesses more sought and safe for investors," said Arsjad.

With the spirit of the Indonesian people who are commonly called mutual cooperation, Kadin believes that strong collaborations among various industries, both private and government, are also needed to build a green, resilient, and future-ready Indonesia.

"Together we can achieve Indonesia Gold 2045 which coincides with the momentum 100 years after Indonesia's independence, towards sustainable growth," said Arsjad.

For information, reinsurance companies are companies that provide services in re-payment of the risks faced by Insurance Companies Losses and or Life Insurance Companies.

Resurance companies are required to obtain a business license from the Financial Services Authority (OJK). The reinsurance company provides a re-cash service business for the risks faced by Insurance Companies or other reinsurance companies.

The Insurance Company helps Insurance Companies in terms of increasing the capacity of certain risk-risk receipts by insurance companies, spreading the risks they bear, stabilizing company profits, minimizing the technical reserves needed, developing company activities and increasing the professional principles and competitiveness of the company.