Joint Venture Insurance Companies
There are several joint venture general insurance companies in Indonesia, operating in affiliation and partnership with reputable European, North American, and Japanese insurance firms. When it comes to choosing an insurer, the issue is fundamentally one of trust — and which company you feel genuinely comfortable dealing with when things go wrong. A firm from your home country, with familiar policy structures and claims procedures, can make an already stressful process considerably easier. Most joint venture general insurers in Indonesia offer a broad range of products including medical, travel, household contents, homeowners, personal liability, motor vehicle, and life insurance, with policies available in both Bahasa Indonesia and English.
All insurance companies operating in Indonesia are regulated and licensed by the Otoritas Jasa Keuangan (OJK), Indonesia’s Financial Services Authority. Before purchasing any policy, it is worth verifying that your chosen insurer holds a current OJK licence — you can check this at ojk.go.id. This is your most basic due diligence step and one that many new arrivals overlook.
Medical Insurance for Your Family During Your Stay in Indonesia
Ask your insurance company in your home country what coverage they offer during your stay overseas, as well as during travel to and from your new posting and on business trips. You may assume that your existing policies will cover you no matter where you live, but in practice there are often significant gaps in home country coverage during an overseas posting, and overseas-based insurers rarely have anyone on the ground in Indonesia to investigate or support a claim efficiently.
Regardless of any coverage you may carry from your home country, we strongly advise you to purchase locally the following protections: insurance for your property if you own it, household contents, your vehicle or vehicles, personal liability, and basic coverage for your domestic staff. Your home country medical policy may offer some overseas coverage, but it is worth reviewing this carefully — many policies exclude treatment in Southeast Asia or impose strict conditions on emergency repatriation claims. Do not assume coverage exists until you have confirmed it in writing.
BPJS Kesehatan — What Expats Need to Know
Since 2015, foreign nationals holding a valid KITAS (Temporary Stay Permit) and working legally in Indonesia have been required by law to enrol in BPJS Kesehatan, Indonesia’s national health insurance scheme. This is not optional — it is a legal obligation tied to your work permit, and your employer is required to register you and contribute to your premiums.
BPJS Kesehatan operates on a tiered system with three coverage classes. For most expats, the practical reality is that the scheme covers treatment at designated government facilities — Puskesmas and selected hospitals — through a referral system, and the quality and speed of care under this scheme varies significantly depending on location. In Jakarta and other major cities the experience is generally manageable; in more remote areas it can be considerably more limited.
The vast majority of expats — particularly those with families — choose to carry international health insurance in addition to BPJS Kesehatan, not instead of it. This allows them to access private hospitals directly, without referral, and to receive treatment overseas when necessary. Well-established international insurers active in Indonesia include Allianz, AXA, Cigna Healthcare, AIA, and Prudential, among others. Your HR department, if you are employed by a multinational, will typically manage your BPJS enrolment while your international policy runs alongside it.
If you are self-employed, a freelancer, or arriving on a retirement or investor visa, your BPJS obligations and options differ. It is worth seeking specific advice from a licensed insurance broker or your KITAS sponsor before assuming you are covered.
Insurance for Your Employees
If you are working for a multinational firm in Indonesia, your company most likely carries group insurance policies for its employees covering health, life, and personal accident. These schemes are often a genuine draw for talented Indonesian staff and are worth understanding as part of your own benefits package. Joint venture general insurance firms can also design and manage internal insurance schemes if you prefer to keep employee coverage consolidated under one provider.
Indonesia’s government social security framework was significantly restructured in 2014 with the establishment of two separate bodies: BPJS Ketenagakerjaan, covering workplace accident, death, old age savings, and pension; and BPJS Kesehatan, covering health care. These replaced the former Jamsostek scheme and now apply more broadly across the formal employment sector. Enrolment in both schemes is mandatory for all formal sector employees, including foreign workers on valid work permits. Premiums are split between employer and employee, with the employer contributing the larger share.
Compliance obligations apply across the formal employment sector regardless of payroll size, and penalties for non-compliance have been tightened in recent years, with labour inspections conducted with greater regularity than was historically the case. If you are setting up a new business or PT PMA, your legal counsel should walk you through current BPJS obligations at the time of incorporation.
Insurance for Household Staff
It is customary, though not legally mandatory, for expatriates — as well as many Indonesian employers — to cover the basic medical expenses of their household staff and drivers. Your housekeeper, cook, and driver may reasonably expect reimbursement of medical expenses, both outpatient and hospital, as well as some assistance with maternity care costs. Unlike in many Western countries, these bills are generally modest, as household staff will typically use neighbourhood clinics and local practitioners who charge reasonable rates. Because of this some expat employers choose not to take out a formal insurance policy for staff but instead set a cap on the medical expenses they are willing to cover in any given year — most commonly the equivalent of one month’s salary.
It is increasingly common for expat employers to arrange basic health coverage for their household staff through BPJS Kesehatan, which satisfies the legal obligation to register domestic workers while keeping costs manageable. Some expat families also purchase simple top-up inpatient policies from local insurers specifically designed for domestic staff — these are inexpensive and provide meaningful protection for both parties.
To protect yourself against unexpectedly high medical costs, you may wish to make it a condition of employment that new household staff pass a basic medical examination, checking for tuberculosis and other communicable diseases. If you require this examination, it is expected that you will cover the cost. If a member of staff you have already employed is found to have a serious condition requiring long-term treatment, it may be more practical to provide them with appropriate medication and support them in returning to their home area for their recovery period.
Your household staff will likely hope that your generosity extends to their immediate family members, and it is quite common for expat employers to assist with medical expenses for spouses and children on a case-by-case basis. Requests for loans to cover the medical costs of extended family members also arise from time to time. It is best to approach these requests individually and to set clear expectations early in the employment relationship.
Employment with Local Firms
If you are coming to Indonesia with a local Indonesian company rather than a multinational, do not assume you will receive the same comprehensive insurance coverage. Expatriates, in general, have a higher insurance awareness than is typical among Indonesian employers, and this is reflected in how benefit packages are structured at many local firms. A number of companies cover medical costs through a direct reimbursement scheme rather than a formal insurance policy — meaning that all or a percentage of your medical expenses are paid back to you by the company. Some firms set annual caps or limit reimbursements to the equivalent of one month’s gross salary. Others offer insurance, but the coverage level may only be sufficient for second or third class hospitalisation and may not extend to outpatient treatment at all.
It is also worth clarifying at the time of offer how the company handles BPJS Kesehatan and BPJS Ketenagakerjaan enrolment for foreign employees. Not all smaller local firms are fully familiar with their obligations toward expat staff, and gaps in coverage can create real complications at the point of claiming.
Things to Look for in an Insurance Company
Choosing the right insurer in Indonesia takes more due diligence than it might at home. Here are the key factors worth investigating before you sign:
- Choose a company with a long, established presence in Indonesia and a sound financial position — look for names that appear consistently among the top twenty insurers in the market
- Select a company you can communicate with comfortably in English or your own language — it is your right to expect this, particularly when dealing with claims
- Claims processing time remains a real differentiator between insurers in Indonesia. Ask specifically how claims are submitted — whether by app, email, or in-person only — what the average settlement time is, and whether there is a dedicated English-language claims line. Digital-first insurers have improved significantly in this area, but experience still varies widely
- Check whether coverage is worldwide, limited to certain countries, or local only — this matters particularly for medical and travel policies
- Ensure your policy includes specific riot and civil commotion provisions. Civil unrest, demonstrations, and localised incidents do occur in Indonesia, and the distinction between “riot,” “civil commotion,” and “political violence” matters when a claim is lodged. Read these clauses carefully
- Ensure your policy covers acts of nature including floods, volcanic eruptions, and earthquakes. Indonesia sits on the Pacific Ring of Fire, and flooding is an annual reality in many parts of the country including Jakarta. This coverage is not optional — it is essential
- Verify that your agent or broker is experienced in dealing with expatriate clients and understands the expectations that come with that
- Check that the insurer is registered and licensed with the OJK — this is non-negotiable
- Ask whether the policy can be managed and claims submitted digitally — most reputable insurers in Indonesia now offer app or portal-based claims management
- If you are based outside Jakarta, confirm whether the insurer has an approved network of hospitals and repair shops in your city or region
- For motorcycle owners: confirm whether your policy covers motorbikes. Many household and vehicle policies require a separate endorsement for motorcycles, which are widely used by expats particularly in Bali, Yogyakarta, and other areas outside the capital
Insurance policies in Indonesia can be written in rupiah or US dollars, with premiums charged accordingly. If your potential expenses are dollar-denominated — overseas medical treatment, replacement of imported vehicle parts — it is worth considering a dollar policy rather than one that reimburses only in rupiah.
Car Insurance
While car insurance is not a legal requirement in Indonesia, any bank financing a vehicle purchase will require that it be insured. With the high cost of cars in Indonesia — import duties make prices considerably higher than in most Western countries — this is a significant asset exposed to unpredictable traffic, reckless drivers, flooding, theft, and opportunistic damage such as the removal of wing mirrors and hubcaps. Stolen vehicles are rarely recovered in Indonesia; they are typically dismantled for spare parts, re-plated, or quickly moved to other islands. In the rare cases where a stolen car is found, it is usually in poor condition.
One specific risk worth being aware of: drivers have been known to arrange for duplicate keys to be made, which are later passed to thieves. Make sure you understand exactly how your policy would respond in this scenario before purchasing.
When choosing your insurer for car coverage — which should include third-party liability, own damage, and personal accident for driver and passengers — price should not be your primary consideration. A number of low-premium providers operate in the market, and the real value of their policies only becomes apparent when a claim is made. In the case of an accident, your insurance company will designate the repair shop you must use, so it is worth finding out in advance which workshop that is — untrained repairmen can cause significant additional damage to your vehicle.
Car insurance can now be researched and purchased online through comparison platforms and direct insurer websites, which has made the process considerably more convenient than it once was. The advice to prioritise claims quality over premium cost, however, remains as relevant as ever.
If you are not fluent in Bahasa Indonesia, we strongly suggest exercising caution about driving yourself in Indonesia. In the event of an accident, a foreigner is very likely to be assumed the guilty party regardless of the facts, simply on the presumption of an ability to pay. If you have a driver, let them handle the situation at the scene. Instruct your driver in advance that under no circumstances should personal information be given to other parties at the scene of an accident. If a situation appears to be turning hostile, it is reasonable to remove yourself and allow your driver to manage the discussion.
To guard against driver-related theft, hire only through a recommendation from someone who has employed that person for a meaningful period of time.
Before purchasing a vehicle, confirm that you can obtain insurance for it in Indonesia. Most insurance companies will not insure a car that is more than ten years old.
Motorcycle Insurance
If you ride a motorbike — as many expats do, particularly in Bali, Lombok, Yogyakarta, and other areas where motorbikes are the practical choice for daily transport — ensure you have specific motor vehicle insurance covering your bike. Third-party liability for motorcycles is technically required under Indonesian law, but enforcement is inconsistent and many riders are effectively uninsured. Given road conditions across much of Indonesia, this is a serious personal risk. It is also worth checking your international health insurance policy carefully — some insurers exclude injuries sustained while riding a motorbike unless a valid local licence is held.
Personal Liability Insurance
This coverage is a genuine necessity for expatriates living in Indonesia, not simply a nice-to-have. Check your home country policy to see whether it includes worldwide coverage — some do, and this provides a baseline. Regardless, we recommend purchasing a personal liability policy locally through a joint venture insurance company.
The reason is straightforward. The Indonesian judicial system is complex and, for foreign nationals, often difficult to navigate. Personal liability insurance not only covers compensation payments in the event of a claim against you, but funds your legal representation — which is where much of the real value lies. Being able to delegate the management of a legal dispute to a capable, locally experienced insurer is a significant practical advantage in a country where the legal process can be slow, opaque, and expensive for foreigners to navigate independently.
Security, Civil Unrest, and What Your Policy Should Cover
Indonesia is, for the vast majority of expatriates, a safe and welcoming place to live. That said, household theft — often opportunistic, occasionally involving former staff — does occur, and it is worth ensuring your household contents policy specifically covers theft including domestic theft. Sentimental or genuinely irreplaceable items are best left in your home country or stored in a safety deposit facility.
Foreign-owned businesses and installations in certain regions have at times faced localised pressure, vandalism, or disruption related to labour and land disputes. If you own or manage a business premises in Indonesia, ensure your commercial property insurance includes adequate coverage for civil commotion and malicious damage.
For a broader discussion of personal security and practical safety in Indonesia, see our [Security In and Around Town] section.
Investing Through Insurance Products — Building Wealth During Your Time in Indonesia
For many expatriates, a posting to Indonesia represents a genuine financial opportunity. The combination of an overseas allowance, lower day-to-day living costs compared to many Western cities, and a period of focused saving can — if approached thoughtfully — make a meaningful difference to your long-term financial position. Insurance-linked investment products are one of the tools available to you, and while they are not the right solution for everyone, understanding what is on offer is worth your time.
Unit-Linked Insurance Policies (Unitlink)
The most widely marketed insurance-investment hybrid in Indonesia is the unitlink product, offered by virtually every major life insurer in the country including Prudential, AIA, Allianz, and Manulife. A unitlink policy combines a life insurance component with an investment fund, with your premiums split between the two. The investment portion is allocated to funds of your choosing — typically a mix of equity, fixed income, and money market options — and the value of your policy grows or falls with the performance of those funds.
Unitlink products have received a mixed press in Indonesia, and it is worth understanding why. The front-loaded fee structures on many policies mean that in the early years, a significant proportion of your premium goes toward charges rather than investment. Surrender charges for early exit can be substantial. And the bundling of insurance with investment can make it genuinely difficult to assess whether you are getting good value on either component. That said, for expats who intend to remain in Indonesia for five years or more and who value the discipline of a structured, regular savings commitment, a unitlink product from a reputable insurer can serve a useful purpose — particularly for goals like funding children’s education.
If you are considering a unitlink product, ask your adviser to provide a detailed fee illustration over a ten-year period, and compare the projected net return against a simpler alternative such as a regular investment into a low-cost index fund. The comparison will tell you a great deal about where the value actually lies.
Education Insurance (Asuransi Pendidikan)
Education insurance is a specifically structured savings and protection product designed to ensure your children’s school and university fees are funded even if something happens to you. Premiums are paid regularly over a defined period — typically tied to the child’s current age — and lump sum or periodic payouts are made at key educational milestones: entering secondary school, beginning university, and so on. The life insurance element means that if the policyholder dies or becomes permanently disabled, the policy continues to pay out on schedule regardless.
For expat families who have committed to international school fees — which in Jakarta can run to USD 20,000 to 35,000 per year or more per child — the protection offered by an education insurance policy is genuinely meaningful. It is worth noting that premiums paid in rupiah carry currency risk if your actual fee obligations are denominated in US dollars. If this concerns you, ask whether your insurer offers a dollar-denominated education policy, as some do.
Endowment Policies
An endowment policy is a life insurance contract that also functions as a disciplined savings vehicle, paying out a guaranteed lump sum at the end of a fixed term — typically ten, fifteen, or twenty years — or upon death, whichever occurs first. Unlike unitlink policies, endowments typically offer a guaranteed maturity value, which makes them more predictable and lower risk, though also lower in potential return.
For expats who find it difficult to maintain consistent investment discipline — particularly those whose financial lives are complicated by frequent relocations — an endowment policy can function as a useful savings commitment. The guaranteed payout at maturity makes it suitable for long-horizon goals such as supplementing retirement income or reaching a defined savings target. Indonesian insurers offer both rupiah and US dollar-denominated endowment products; for expats whose long-term liabilities are in a foreign currency, the dollar option is generally the more appropriate choice.
Whole Life Insurance with Cash Value
Whole life insurance provides lifelong coverage — unlike term insurance, which covers a defined period — and accumulates a cash value over time that you can borrow against or surrender for a payout. For higher-net-worth expats who have already maximised pension contributions in their home country and are looking for additional wealth accumulation vehicles, a dollar-denominated whole life policy from a reputable international insurer can form part of a broader financial plan.
This is a specialist area and the right product depends heavily on your tax residency, home country regulations, and long-term intentions. Independent advice from a financial planner experienced in cross-border planning for expatriates is strongly recommended before committing to any long-term whole life product.
Offshore Portfolio Bonds and International Savings Plans
Expatriates in Indonesia — particularly those on internationally structured packages — are frequently approached by financial advisers offering offshore savings and investment products, typically structured as portfolio bonds or regular savings plans based in jurisdictions such as the Isle of Man, Guernsey, Luxembourg, or Singapore. These products sit at the intersection of insurance and investment: they are technically insurance wrappers, but their primary function is to provide a tax-efficient vehicle for investing across a diversified range of global funds.
The potential advantages include portability — the policy moves with you as you relocate from country to country — access to a wide range of international investment funds, and in some structures, estate planning benefits. The potential disadvantages are real and worth understanding clearly: long commitment periods with significant exit penalties in the early years, adviser commission structures that can create conflicts of interest, and a level of complexity that makes it genuinely difficult to assess true value. A number of international savings plans that were aggressively sold to expats across Southeast Asia in the 2000s and 2010s left policyholders significantly out of pocket after early exit, or after discovering that investment returns had been largely consumed by fees.
If you are approached about an offshore savings or portfolio bond product, take your time. Ask for full fee disclosure in writing. Seek a second opinion from an independent, fee-only adviser. Ensure that both the product and the adviser are regulated by a credible financial authority. The quality of what is on offer varies enormously, and the difference between a well-structured offshore plan and a poorly structured one — in terms of your actual long-term wealth — can be very significant.
Retirement Planning Considerations for Expats in Indonesia
Indonesia does not currently offer a tax-advantaged retirement savings vehicle for foreign nationals equivalent to a UK SIPP, a US IRA, or an Australian superannuation fund. Your retirement savings strategy will therefore depend almost entirely on what you maintain in your home country, what your employer contributes through group schemes, and what you build through private savings and investment during your time here.
The BPJS Ketenagakerjaan old age savings programme (JHT) and pension programme (JP) are mandatory for working expats, but the sums involved are unlikely to form a meaningful part of a typical expat’s retirement fund given that contributions are benchmarked against Indonesian salary structures. It is nonetheless worth understanding what you are entitled to withdraw upon departure from Indonesia, as the rules on JHT withdrawal for foreign nationals have evolved and the accumulated balance — however modest — is yours to claim.
For most expats, the most important retirement planning action during an Indonesia posting is to ensure that home country pension contributions are not inadvertently lapsing, and that surplus income is being directed into a diversified, portable, low-cost investment vehicle — whether that is a home country pension top-up, an ISA or Roth IRA equivalent, or a direct investment portfolio.
Getting Independent Financial Advice
The quality of financial advice available to expats in Indonesia varies considerably. There are excellent, well-qualified, independent financial planners working in Jakarta and Bali, and there are also commission-driven salespeople presenting themselves as holistic wealth managers. The key questions to ask any adviser are straightforward: Are you regulated, and by which authority? Are you independent or tied to specific products or providers? How are you remunerated — by fee, by commission, or both? A willingness to answer these questions clearly and transparently is itself a meaningful indicator of the kind of advice you are likely to receive.
The extra income that comes with many expat postings in Indonesia is a real opportunity. Approached carefully, with good advice and clear goals, it can make a lasting difference to your financial future.
Quick Reference — Insurance Priorities for New Arrivals in Indonesia
| Insurance Type | Priority | Notes |
|---|---|---|
| International Health Insurance | Essential | Carry alongside mandatory BPJS Kesehatan enrolment |
| BPJS Kesehatan | Legally required | Mandatory for KITAS holders in formal employment |
| Personal Liability | Strongly recommended | Particularly important given the legal environment for foreigners |
| Household Contents and Property | Recommended | Ensure flood, earthquake, and theft are all covered |
| Motor Vehicle — Car | Recommended | Not legally required but strongly advisable |
| Motor Vehicle — Motorbike | Recommended | Often overlooked; check licence conditions on your health policy |
| Domestic Staff Medical | Customary | Basic BPJS enrolment or simple inpatient top-up policy |
| Education Insurance | Worth considering | Relevant for families in international schools; dollar option available |
| Offshore Savings or Investment | Consider with care | Seek independent, regulated financial advice before committing |
Frequently Asked Questions
Is health insurance mandatory for expats in Indonesia?
BPJS Kesehatan enrolment is legally mandatory for foreign nationals holding a KITAS and working formally in Indonesia. Most expats also carry a separate international health insurance policy to access private hospital care without referral and to cover treatment abroad.
Is car insurance compulsory in Indonesia?
Car insurance is not a legal requirement in Indonesia, though any bank financing a vehicle purchase will require insurance as a condition of the loan. Given the risks — traffic conditions, flooding, theft, and the difficulty of recovering stolen vehicles — comprehensive cover is strongly advisable.
Can foreigners buy insurance in Indonesia?
Yes. Most joint venture and international insurers operating in Indonesia offer policies to foreign nationals holding valid residency documents. Policies are available in both Bahasa Indonesia and English, and some are offered in US dollars.
What is the best health insurance for expats in Indonesia?
There is no single answer, as the right policy depends on your family situation, budget, existing employer coverage, and where in Indonesia you are based. Internationally recognised insurers active in Indonesia include Allianz, AXA, Cigna Healthcare, AIA, and Prudential. It is worth comparing plans through an independent broker who works regularly with expatriate clients.
Does my home country insurance cover me in Indonesia?
Some home country policies include overseas coverage, but many exclude treatment in Southeast Asia or impose conditions on emergency repatriation. You should confirm coverage in writing with your home insurer rather than assuming it applies.
What is a unitlink insurance policy?
A unitlink policy is an insurance product that combines life coverage with an investment fund. It is widely sold in Indonesia by major insurers. While it can serve a useful purpose as a structured savings vehicle, the fee structures on some products are high and should be examined carefully before committing.
What happened to Jamsostek in Indonesia?
Jamsostek was replaced in 2014 by two new bodies: BPJS Ketenagakerjaan, which covers workplace accident, death, old age savings, and pension; and BPJS Kesehatan, which covers health care. Both are now mandatory for formal sector employees including foreign workers.
How do I check if an insurance company is legitimate in Indonesia?
All insurance companies in Indonesia must be licensed by the OJK (Otoritas Jasa Keuangan), the Financial Services Authority. You can verify an insurer’s registration status at ojk.go.id.
This article was originally published by expat.or.id and has been updated to reflect current conditions, regulations, and options for expatriates living in Indonesia. Last Updated: June 2026.
