Sunday, 5th April 2026
Khabor Wala Desk
Published: 5th January 2026, 7:47 AM
In a landmark move, Indonesia’s Financial Services Authority (OJK) has made travel insurance mandatory for all foreign visitors entering the country. The policy aims to provide financial protection against medical emergencies, accidents, and other unforeseen travel-related incidents while simultaneously encouraging innovation and growth within the domestic insurance sector.
Ogi Prastomiyano, Head of OJK’s Insurance, Guarantee, and Pension Fund Supervision Board, emphasised in a press statement, “Mandating travel insurance ensures that tourists have immediate financial support in the event of accidents, sudden medical emergencies, or trip cancellations. However, it is crucial to assess the readiness of the entire ecosystem before implementation. Coordination between the insurance industry, tourism sector, healthcare providers, and immigration authorities is essential.”
Analysts highlight that Indonesia receives millions of international tourists annually. Without adequate financial safeguards for unexpected incidents or medical emergencies, visitors may face significant financial losses. Such incidents could also tarnish the country’s reputation as a safe and attractive tourist destination.
OJK believes the new mandate will create fresh opportunities within the domestic insurance market. Providers will be able to offer short-term, customised policies tailored to foreign travellers’ needs. Coverage will include medical emergencies, accidents, trip cancellations, lost or damaged luggage, and flight delays.
| Coverage Type | Examples | Potential Benefit |
|---|---|---|
| Medical Emergencies | Hospitalisation, surgery | Reduces financial burden |
| Accidents | Injuries during travel | Ensures prompt medical care |
| Trip Cancellation | Cancelled or delayed tours | Minimises unexpected costs |
| Lost or Damaged Luggage | Misplaced or damaged baggage | Protects travellers’ personal belongings |
| Flight Delays | Delayed flights | Maintains travel schedule continuity |
Experts stress that successful implementation requires setting appropriate premiums, defining clear minimum coverage standards, and establishing transparent claims procedures. The objective is not merely regulatory compliance but ensuring tangible benefits for travellers.
OJK anticipates that mandatory travel insurance will strengthen Indonesia’s standing as a safe, modern, and responsible tourism destination while stimulating growth in the national insurance sector. Tourism and financial authorities are currently reviewing final policy frameworks and implementation processes to guarantee maximum efficiency and transparency.
With this initiative, Indonesia joins a growing number of countries prioritising traveller protection, balancing visitor safety with economic opportunities for domestic industries.
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