Protecting government assets against the impacts of natural disasters

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Protecting government assets against the impacts of natural disasters

Indonesia: Public asset insurance scheme

The challenge

Indonesia has approximately 96 million state assets across several different ministries, with a total insurable value of USD 14.5bn.

A 2014 regulation obliged the government to implement protection for public assets, but action was triggered only when the Minister of Finance passed regulation No. 97 in 2019.

In 2019, the Asuransi Barang Milik Negara (ABMN) programme was established, which is a traditional indemnity all perils programme, administered by Directorate General of State Assets (DJKN).

The solution

The DJKN started a pilot in 2019, covering offices, training centres, and health facilities belonging to the Ministry of Finance. A staggered approach to programme development has seen a gradual expansion to other types of assets such as roads, bridges and other infrastructure.

The assets are insured against natural disasters such as earthquake, floods, fires, as well as man-made disasters like rioting, terrorism and plane crashes.

The policy is underwritten by a consortium of local insurers, led by state-owned insurer JASINDO. Swiss Re is part of the reinsurance panel of this programme.

The impact

  • As of 2023, Indonesia has insured a total of 11 million government assets at a total insured value of USD 4.5bn, which helps to build climate resilience and assure economic continuity. ​

  • As the fourth most populated country in the world, the security of public assets and the related public budgets has a significant impact on Indonesia’s economic stability. This programme supports national disaster risk management.​

  • The number of ministries participating continues to expand, with ongoing discussions to include more public infrastructure and assets.​

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