Rotary Club: Change and Continuity in Financial and Insurance Industry in Indonesia for Locals and Expats

A few days ago, I delivered a presentation to the Rotary Club in Jakarta, about changes and continuity in the insurance and financial industry in Indonesia. I focused mainly on people in the individual level, rather than for firms.

I made the following broad points:

• For locals, only around 3% have life policies. Take up of many types of pensions is also low. However, with new compulsory pension and insurance changes on the way, that might be about to change.
• Culture dictates investment more than logic. A good example of this is that locals have typically focused on real estate rather than equity investments, despite the superior performance of the later.
• Trends, such as slowing growth and aging populations, make change imperative.
• For expats, in recent years there has been significant changes at the government level which affects, in particular, UK and US citizens.
• Some things have remained the same, however. In particular most citizens in Indonesia, especially expats, save too little, as the expat lifestyle makes overspending easy.

The full presentation is available on request.




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