The Financial Services Authority (OJK) continues to encourage Shariah insurance companies to develop products for the halal industry, in line with the 2023-2027 roadmap for the development of the Indonesian Insurance Industry.
The roadmap aims to have 50% of Shariah-compliant insurance companies offering products that support the halal sector by 2027, said Mr Ogi Prastomiyono, chief executive of the OJK’s Insurance, Guarantee, and Pension Fund Supervisory Division, in a statement.
Several Islamic insurance companies have begun developing various products targeting sectors within the halal industry ecosystem.
Mr Ogi said, "The scope of the halal industry is very broad, encompassing the manufacturing, service, and social sectors, so the required Sharia insurance products are also diverse."
Some examples of insurance products relevant to the halal industry include Shariah fire insurance for halal factories, Shariah transportation insurance for the distribution of halal products, umrah and hajj travel insurance, and Shariah life insurance for workers in the halal sector.
"To achieve the 50% target by 2027, the OJK, together with the industry associations, will routinely monitor and encourage product innovation, develop supportive regulations, and strengthen the capacity of industry players, including consumer education," Mr Ogi said.