“With the entrance of global players as shareholders, it is hoped that many innovations and strategic breakthroughs can be achieved to support the company’s further growth,” said LPGI president director Agus Benjamin.
In 2020, the government officially changed the foreign ownership provisions in the insurance industry. Foreign investors are now allowed to own more than 80% shares of insurance firms in Indonesia. This policy is stipulated in Government Regulation (PP) 3/2020 on amendments to PP 14/2018 on foreign ownership of insurance companies.
The rationale of the PP states that the development of market potential of the insurance industry in Indonesia cannot be carried out solely by relying on local insurance companies or domestic investors. It also necessitates the role of foreign insurance companies or foreign investors who have the capital, experience, and technology in developing the insurance industry. (rr)