The Effectiveness of OJK Supervision on Insurance Companies in Default: A Case Study of Jiwasraya

Handro Kurnia Sitorus
Fatima Panggabean
Mutiara Khalishah
Naufal Akbar

ISNU Nine-Star Multidisciplinary Journal (INS9MJ)
Vol. 2 No. 3 (2025): Vol.2 No.3 Desember 2025

The supervision of the Financial Services Authority (OJK) over insurance companies is an important aspect in order to maintain financial sector stability, protect customer interests, and maintain public trust. This study aims to analyze the effectiveness of OJK supervision on insurance companies, the causes of OJK's failure to supervise Jiwasraya, and reform efforts that can be implemented for future improvements. The method used is qualitative with a normative juridical approach, namely examining laws and regulations, OJK reports, Jiwasraya financial statements, and other relevant literature. Data collection was carried out through literature studies and analyzed qualitatively-descriptively. The results of the study show that the effectiveness of OJK supervision is still low due to the weakness of Jiwasraya's governance, the limited capacity and authority of the OJK, and external influences that make it difficult for the OJK to act decisively and independently. Supervision still relies on internal reports and detects problems late, so that Jiwasraya's problems accumulate and become a crisis. In its reform efforts, the OJK needs to improve its capacity, technology, and supervisory approach, encourage more transparent governance of insurance companies, and maintain its independence for the sake of creating stability, trust, and customer protection. This research is expected to be an important input for the improvement of Indonesian insurance regulations and supervision.