Public Concerns Over Upcoming Mandatory Vehicle Insurance in Indonesia: A Financial Burden?

Jakarta – Mandatory vehicle insurance in Indonesia is set to be enforced by the Financial Services Authority (OJK) starting January 2025, causing significant public concern. This new regulation requires all motor vehicles, including motorcycles and cars, to carry third-party liability insurance. The anticipated higher expenses for vehicle owners are sparking widespread discontent.

President Joko “Jokowi” Widodo mentioned that the government has not yet held a meeting regarding this mandatory vehicle insurance policy. However, with the deadline fast approaching, public opposition is mounting. Many individuals are worried about the financial burden this policy will impose.

Jerry, a 35-year-old respondent, is against the vehicle insurance mandate. He believes it is unnecessary since many vehicle sellers already offer insurance policies. “I’m against this vehicle mandate. We already get our insurance when we purchase our vehicles. Why pay for third-party liability insurance again? This just adds to our expenses,” Jerry stated.

Nurdin, a 32-year-old motorcyclist, echoes this sentiment, arguing that insurance should be optional. “I don’t agree with this mandate. People should be free to choose whether to insure their vehicles or not. If this policy takes effect, we will have to spend more money,” Nurdin explained.

Saka, aged 26, while acknowledging the benefits of insurance in covering accident-related losses, also opposes the mandatory nature of the policy due to increased costs. “That’s the good part. But at the same time, I disagree with this mandatory insurance because it will lead to bigger costs,” Saka noted.

The upcoming mandatory vehicle insurance in Indonesia regulation has sparked a heated debate about the financial implications for vehicle owners. As the January 2025 deadline approaches, public disapproval poses a significant challenge for the OJK and the Indonesian government. Balancing the benefits of third-party liability insurance with the concerns of increased expenses will be crucial in addressing public resistance to the new policy.

By understanding the public’s viewpoint and addressing their concerns, the government can work towards a solution that ensures road safety while minimizing the financial impact on vehicle owners. As discussions continue, it remains to be seen how the OJK and the government will navigate this contentious issue.