Reflecting On The Kanjuruhan Tragedy, OJK Will Require Insurance For Sports And Music Events

JAKARTA - The Financial Services Authority (OJK) plans to launch mandatory insurance for the community.

This has been mandated in the Law on the Development and Strengthening of the Financial Sector (UU P2SK).

The Chief Executive of the OJK Insurance, Guarantee and Pension Fund, Ogi Prastomiyono, said that the OJK plans to implement mandatory insurance regulations in the Consumer Guarantee and Protection Insurance Act (P2SK) related to the third party LIABILITY. For example, for football match spectators.

"Now there is no (insurement) because it is not mandatory. For example, in the Kanjuruhan case, after the examination, no party is insured. Therefore, with mandatory insurance rules, later there will be insurance on audience tickets at around Rp50,000 (for example)," said Ogi in Jakarta, Monday, October 23.

Ogi said that mandatory insurance is not only applied to sporting events but also music events, transportation and other sectors.

According to Ogi, if mandatory insurance has been launched, insurance companies will be able to issue their products and if they cannot issue products, the insurance company can form a consortium or partner with other companies.

This is because the current insurance only exists for passengers facilitated through Jasa Raharja.

In the future, mandatory insurance will be encouraged to insure vehicles.

In addition, insurance can prevent the same cases as Kanjuruhan so that it does not happen again.

Ogi said that the application of mandatory insurance will increase insurance penetration, protect the public, and allow insurance companies to face risks and losses in the future.

"It will increase penetration (insurement). People are protected, companies can cover losses or possible risks in the future. Thus, there is mutual need between the community and insurance companies," explained Ogi.

The concept of "understanding and having" is also important in the sale of insurance products, where prospective buyers must first understand before having insurance. With a balanced understanding between insurance products and potential buyers, the relationship can support each other.

According to Ogi, insurance funds have a big role in the economy. However, in Indonesia, income from the insurance sector is still relatively small. It is estimated that by 2045, Indonesia will be included in the list of the five largest economies (GDP).

By having a fast economy, protection will be more important. Therefore, it is important to build an insurance industry that is able to serve the protection needs of the community in the future," he said.

Meanwhile, Chairman of the OJK Board of Commissioners Mahendra Siregar said that insurance penetration in Indonesia is still low. In fact, it has only reached 2.75 percent. This means that only about 7.5 million people in Indonesia use insurance from the total population of 275 million people.

"We are talking about small assets to GDP. The penetration of 2.75 percent is said to mean around 7.5 million people out of 275 million people (residents), in fact, the contribution to the Indonesian economy is still very small." he said, Monday, October 23.

Thus, Mahendra assessed, there is still very large room for the development of the insurance industry, considering that Indonesia's economic growth is consistent at 5 percent, so that public interest in using insurance is still wide open.

"Why is the number so small, for people who understand besides this, only 2.75 percent, plus a map of young democracy, there are still many opportunities for learning income. It's not a bad problem, it's a good problem because the repair room is extraordinary and the potential is unlimited," he explained.