JAKARTA. The government has raised the limit of foreign ownership in insurance companies to above 80%.

The policy is contained in Government Regulation No. 3/2020 on the Revision of Government Regulation No. 14/2018 on Foreign Ownership in Insurance Companies.

As published on the Cabinet Secretariat’s official website on Monday (27/1), the new regulation revises a number of key conditions, including the exemption of foreign shareholders with stakes over 80% from the ownership limit policy. The regulation has been effective since January 20, 2020.

Previously, Government Regulation No. 14/2018 stated that foreign investors were only allowed to own a maximum of 80% stakes in insurance companies while the remaining 20% had to be from local investors or made through a stock exchange listing.

If a foreign shareholders owns more than 80% stake in a private insurance company upon the enactment of the regulation, the company involved is exempted from the foreign ownership limit regulation. (AM/MS)