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Reuters
3 days ago
- Business
- Reuters
Indonesian policyholders must pay part of medical insurance claims from 2026
JAKARTA, June 4 (Reuters) - Starting next year, Indonesian policyholders will have to bear some of the cost of their hospital bills through co-payment, according to a new regulation intended to curb overclaims and curb a rise in medical costs. Under the new rules, policyholders will have to pay at least 10% of their total claim or a maximum of 300,000 rupiah ($18.39) for outpatient care and 3 million rupiah ($183.94) for inpatient care. Indonesia's Financial Services Authority (OJK) said the regulations were a response to a significant increase in insurance claims due to the higher cost of health services. It did not say by how much claims had risen. The rule was also to prevent moral hazard and overtreatment, OJK added. "If this continues, we fear the sustainability of the health insurance business could be disrupted," OJK said in a statement this week. Indonesia's medical insurance industry is dominated by foreign players, including Prudential (PRU.L), opens new tab, Allianz Group ( opens new tab and AIA Group ( opens new tab. ($1 = 16,310.0000 rupiah)
South China Morning Post
07-02-2025
- Business
- South China Morning Post
Indonesia's soaring ‘buy now, pay later' debts fuel calls for tighter rules
Soaring debts in Indonesia from 'buy now, pay later' (BNPL) schemes have raised alarm, with financial regulators set to impose stricter rules to prevent young consumers from falling into borrowing cycles that could hurt their creditworthiness and long-term financial health . As of November, debts from BNPL schemes – which allow users to pay for purchases in instalments, often interest-free – had risen to 30.36 trillion rupiah (US$1.8 billion), according to the Financial Services Authority (OJK), or a 42.68 per cent increase from the same month in 2023. OJK also noted that nearly three per cent of those debts had been classified as non-performing financing (NPF), meaning users had failed to repay them. In response to the rising debts, OJK is preparing new rules to tighten eligibility for BNPL users. Set to take effect on January 1, 2027, the rules will require applicants to be at least 18 years old and have a minimum monthly income of 3 million rupiah (US$185) to qualify for BNPL services. 'We don't want the younger generation to get caught in debt while they don't have the ability to pay it. That's why we set [the minimum age] to 18 years,' Ahmad Nasrullah, OJK's head of special financial institution supervision, told reporters during a media briefing on January 21. 'We want to mitigate this risk for both parties, from the borrower's side and from the lender's side.'
