INDONESIAN PRESIDENT APPROVES NEW INSURANCE CAPITAL REQUIREMENTS

Concern has been expressed over new rules raising minimum capital requirements for risk carriers in Indonesia. The country’s president Susilo Bambang Yudhoyono has signed a new government regulation amending a previous regulation on insurance business raising the minimum capital limit. Under the amended regulation, an insurance company will be expected to have paid up capital of at least Rp100bn, while a reinsurance company will need Rp200bn and a broking company Rp1bn. Sharia companies will also come under the new rules and sharia insurance companies will need capital of at least Rp50bn, while the figure for sharia reinsurance companies is Rp100bn.