Jokowi: There Has Been No Meeting On Mandatory Insurance For Vehicles

Indonesian President Jokowi (photo; Antara)

JAKARTA - President Joko Widodo (Jokowi) stated that the government has so far not discussed the mandatory insurance policy for motorized vehicles. Where, it is planned to take effect in 2025 by the Financial Services Authority (OJK).

"There has been no meeting regarding that yet," said President Jokowi quoting Antara.

To note, OJK states that the Mandatory Insurance Program, including vehicle insurance, is still waiting for the issuance of government regulations (PP) as the legal umbrella for its implementation, such as the scope and effective time of program implementation.

"The TPL Compulsory Insurance Program (THird partyliability) related to traffic accidents is intended to provide better financial protection to the community," said OJK Insurance, Guarantee and Pension Fund Chief Executive Ogi Prastomiyono.

According to Ogi, this is because the program will reduce the financial burden that must be borne by vehicle owners in the event of an accident, and furthermore will form better driving behavior.

With increasing protection against risks, Ogi said that the community will be more protected and feel safer and can also encourage overall economic growth.

Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK) stipulates that the government can form a Mandatory Insurance Program according to needs, including vehicle insurance in the form of third party legal responsibility (TPL) related to traffic accidents, fire insurance, and home insurance for disaster risk.

Meanwhile, Minister of Industry (Menperin) Agus Gumiwang Kartasasmita has also responded to the mandatory insurance policy plan for these motorized vehicles.

According to him, the entire ecosystem, including insurance financing institutions, must play a role in growing the automotive industry in Indonesia.

"To increase or grow the automotive industry, the entire ecosystem must play a role, including insurance finance and so on," said Agus after attending the opening of the 2024 Gaikindo Indonesia International Auto Show (GIIAS) at ICE BSD, Tangerang, Banten.