Promoting inter-institutional synergy is one key to accelerating the transformation and strengthening the competitiveness of the Shariah insurance industry in Indonesia, according to a report released by IFG Progress, the think tank of Indonesia Financial Group (IFG), a state-owned financial holding company.
The report, titled “Economic Bulletin – Special Issue FGD Asuransi Syariah 2025 – Opportunities and Challenges of Shariah Insurance in Indonesia”, said, “Coordination between OJK, KNEKS, BPJPH, and DSN–MUI needs to be directed toward building a more integrated ecosystem, from the regulatory aspects and product standardisation to the supervision of Shariah principles.”
OJK is the Financial Services Authority; KNEKS is the National Committee for Shariah Economy and Finance, BPJPH is the government agency, Halal Product Assurance Organising Body; and DSN-MUI is the National Shariah Council – Indonesian Ulama Council.
Increasing inter-institutional synergy is one policy recommendation made during a focus group discussion in October 2025 involving industry players, associations, academics, and Islamic community organisations. Other recommendations are:
- Strengthening literacy, communication, and social trust
- Offering product differentiation and added value in Shariah insurance
Market share
The recommendations were made because the market share of the family and general takaful branches remains small relative to the conventional insurance market, even though the takaful market shows an upward trend. M