JAKARTA. The government plans to limit the foreign investors’ ownership in a local insurance company maximum at 80%. The plan is included in the revision of a government regulation, which has been being discussed. This regulation is the derivative of the Law No 40/2014 on the Insurance. As comparison, the existing regulation, namely the Government Regulation No 63/1999 on the Insurance Business does not specify the limit for the foreign investment in insurance business. The Minister of Finance Sri Mulyani said, the limitation of foreign investments will be applied to the new insurance companies, as well as the existing insurance companies. Therefore, the foreign investors with an ownership in insurance companies of more than 80% have to divest a part of their shares to comply with the regulation.
Foreign ownerships in insurance to be restrained
JAKARTA. The government plans to limit the foreign investors’ ownership in a local insurance company maximum at 80%. The plan is included in the revision of a government regulation, which has been being discussed. This regulation is the derivative of the Law No 40/2014 on the Insurance. As comparison, the existing regulation, namely the Government Regulation No 63/1999 on the Insurance Business does not specify the limit for the foreign investment in insurance business. The Minister of Finance Sri Mulyani said, the limitation of foreign investments will be applied to the new insurance companies, as well as the existing insurance companies. Therefore, the foreign investors with an ownership in insurance companies of more than 80% have to divest a part of their shares to comply with the regulation.