JAKARTA - The Financial Services Authority (OJK) has revealed that 17 Sharia Business Units (UUS) in the insurance industry will undergo spin-offs in 2025. This move is aimed at accelerating the growth of the Islamic insurance sector in Indonesia.

“Five other UUS will transfer their portfolios to existing Islamic insurance companies,” said Ogi Prastomiyono, Chief Executive Supervisor of Insurance, Guarantee, and Pension Funds (PPDP) at OJK, during the Financial Services Industry Annual Meeting (PTIJK), Wednesday (12/2).

Between January and December 2025, OJK noted that one UUS from a life insurance company had obtained a licence for Sharia life insurance and is currently in the process of transferring its portfolio. Additionally, one UUS from a general insurance company has completed its portfolio transfer to an existing Islamic insurance company.

This spin-off policy is an implementation of Article 9 of OJK Regulation No. 11 of 2023, which mandates that insurance and reinsurance companies must separate their Sharia business units by the end of 2026 at the latest.

OJK emphasised that the primary goal of this policy is to strengthen the Islamic insurance ecosystem in Indonesia. With the spin-offs, it is expected that Sharia insurance penetration will increase, given the large market potential in the country.

“We hope that with this separation, the Islamic insurance industry can grow further and provide more optimal services to the public,” Ogi said. (DK/ZH)