This country highlight showcases how the Global Inclusive Insurance Facility (GIIF) has supported the development of climate risk insurance in Indonesia since 2013. Working primarily through a collaboration with PT Reasuransi MAIPARK, owned collectively by all licensed general and reinsurance companies in Indonesia, GIIF has helped introduce innovative index-based insurance products in one of the world's most disaster-prone countries.

Key achievements include developing and gaining regulatory approval for the world's first earthquake index insurance (EQII) product in 2016, designed to protect rural bank lending portfolios from liquidity shortages following major seismic events, particularly relevant in a country where over 133 million people live in or near high-risk earthquake zones. GIIF also supported the development of a Cocoa Soil Moisture Index (SMI) insurance product in collaboration with PT Mars Symbioscience Indonesia and AAUI, which received OJK product licensing in September 2021, a first for Indonesia's insurance industry.

GIIF's strategy in Indonesia has spanned capacity building, technical advice on product design and pricing, financial education for farmers and distributors, and public policy dialogue to strengthen the regulatory environment through OJK.

This highlight also looks ahead to the next phase of GIIF's work in Indonesia, with growing emphasis on digitalization, sophisticated climate data integration, and expanding insurance solutions across a broader range of agricultural sectors and communities.

📥 Read the full Indonesia Country Highlights to learn more.