The Indonesian State is insuring its assets

After a year 2018 marked by a devastating earthquake followed by a tsunami, the Indonesian State has decided to insure its assets against natural disasters and other hazardss such as terrorism, riots, civil commotion.

Starting from December 1, 2019, a total of 1 360 buildings worth 769 million USD, held by the Ministry of Finance, will be insured. The contract has been signed with a consortium of 56 insurers. The assets of other departments will also be covered in 2020.

This lack of insurance coverage for State assets has always been a problem in Indonesia, an archipelago of 17 000 islands whose risks differ from region to region. The difficulty of determining the premium amount has often been cited by insurers.