Indonesian Insurers Prepare to Comply with Regional Takaful Regulations 

The Indonesian Financial Services Authority (OJK) has started preparing the insurance sector to meet the requirements of Aceh Province’s Law for the Islamic Financial Institutions (LKS) of 2018. This regulation stipulates that all financial institutions in the province of Aceh must carry out their activities based on Islamic principles, effective the 4th of January 2022.

Sekar Putih Djarot, OJK Spokesman, mentioned that a series of preparatory steps have been taken towards full implementation of the LKS in early 2022.

The OJK spokesman added that OJK has given directions to existing conventional insurance providers on the LKS arrangements, and assessed their preparation towards...