The insurance industry in Indonesia expects that an insurance programme covering government assets will be able to start running this year.
Insurers have formed a consortium called State Property Insurance (BMN) to undertake the programme.
Mr Yasril Rasyid, a director of Reasuransi Maipark Indonesia, said the government is still reviewing state assets in the country that can be insured, according to a report by Kontan.
He said that Maipark is assisting the Finance Ministry to draft the implementation guideline, which is likely to be completed this year. The technical guidance will cover the scope of assets to be insured, insurance procurement system, insurance management, claims handling and other details.
On his part, Mr Dadang Sukresna, chairman of the General Insurance Association of Indonesia (AAUI), explained that the association is waiting for the BMN insurance scheme to be finalised. It is still being drafted by the Directorate General of State Assets of the Ministry of Finance and the Financial Services Authority (OJK).
Last month, AAUI had a meeting with the Directorate. It was agreed that the association would prepare a draft BMN policy for All Risk Property Insurance and disaster insurance. Insurance premium rates will also have to be agreed on.