Budi Herwan has been elected as the President of the Indonesian General Insurance Association (AAUI) for the term 2026-2030 during the association's eighth conference. He emphasized the importance of enhancing human resources and adopting digital technology to improve the sector's performance. This election comes at a time when Indonesia is facing economic and geopolitical challenges that require new and effective strategies.
In statements following his election, Herwan clarified that his team will work towards achieving ambitious goals, aiming to elevate Indonesia's ranking among member countries of the Association of Southeast Asian Nations (ASEAN) in the field of insurance. He stressed the need for Indonesia to be among the top four countries in this domain, reflecting the association's ambitions to enhance its regional standing.
Event Details
Herwan pointed out that developing human resources is a core priority, as the insurance sector in Indonesia requires high competencies to face increasing challenges. He also highlighted the importance of digital transformation in improving the sector's operational efficiency, mentioning collaboration with the Chinese company Peak3 to develop an integrated information platform for insurance.
Additionally, Herwan addressed other significant issues, such as the necessity of meeting the minimum capital requirements by December 31, 2026, and implementing the new Financial Accounting Standards (PSAK 117). He called on the Indonesian Financial Services Authority (OJK) to provide facilities for companies facing difficulties in applying these standards.
Background & Context
Historically, the insurance sector in Indonesia has seen remarkable growth, yet it has faced numerous challenges due to global economic crises and political changes. In recent years, digital transformation has become an urgent necessity, as many companies strive to enhance their services and operations through modern technology.
Indonesia is considered one of the largest markets in the ASEAN region, making it an important hub for investment in the insurance sector. However, the challenges the country faces, such as economic fluctuations and geopolitical disputes, necessitate innovative strategies to ensure sustainable growth.
Impact & Consequences
The new elections in the Indonesian Insurance Association represent a significant step towards strengthening the sector in the face of current challenges. The focus on developing human resources and digital technology may contribute to improving efficiency and increasing the sector's competitiveness at the regional level.
These strategies are expected to enhance the level of services provided to clients, thereby boosting confidence in the sector and encouraging more investments. Furthermore, collaboration with global companies may open new avenues for expansion and growth.
Regional Significance
Indonesia's experience in developing its insurance sector serves as a model for many Arab countries seeking to enhance their capabilities in this field. Arab nations can benefit from Indonesian experiences in digital transformation and human resource development, contributing to the improvement of their economic sectors.
In conclusion, Budi Herwan's election represents a new opportunity for the Indonesian Insurance Association to achieve its ambitious goals and strengthen its position in the regional and international markets.