Indonesia’s Financial Services Authority (OJK) plans to launch 29 new takaful companies by December 31, 2026. This initiative is part of a broader effort where 41 insurance companies with takaful windows submitted plans to spin off their operations. According to OJK’s chief executive, Mr. Ogi Prastomiyono, as of August 2024, 12 Shariah units will cease operations and transfer portfolios, while 29 units will continue, with new companies set to begin operations starting in 2024. The regulatory framework encourages this spin-off, aiming to enhance the Islamic insurance sector’s reach and sustainability in Indonesia.
