Indonesia's Takaful prospects foreign players seeking establishment in promising market Introduction

     Last year, the Indonesia Islamic insurance assets surged 47.6 percent to 4.5 trillion rupiah ($512 million) from a year earlier, with premiums for the The Takaful sector growing 35.7 percent to 3.2 trillion rupiah. Overall, the Islamic insurance made up 2 percent of the total 224.9 trillion rupiah ($ 25 billion) of insurance assets in the country. All  this according to Isa Rachmatarwata, Head of the Insurance Bureau at Indonesia's Capital market and financial institution Supervisory Agency BAPEPAM LK, still in March 2011. This remarkable figure outperforms the global Takaful growth by far.

     On the global Takaful market, Indonesia is in absolute figures 5th rangking, behind the KSA, Malaysia, UAE and Sudan. it has 3 full fledged takaful operators and 36 takaful windows (Source : E&Y, World Takaful Report 2010, p. 37). in Southeast Asia, both Malaysia and Indonesia are by far the market drivers, so in absolute premium contributions as in the internal growth figures.

just for a comparison with a more mature insurance market: the Belgian market (10 million inhabitants) is dominated by four large banc assurance conglomerates- a phenomenon still new to Indonesia- which contribute nearly half of the total $10 billion insurance premiums, making it the 9th  biggest European market (or more concrete = per capital 100 times bigger than Indonesia). here- doe to certain advantages and benefits attached to the segment, such as tax exemption, better returns, as well as savings- life insurance has however known a steady growth, mainly driven by the demand for motor, accident and health segments (property 30%- motor 45% - health 9% - liability structure- wherein in both the life and non-life segment - the top five player  grab the majority of the market share. Major elements for growth are an expanding economy, increasing incividual life insurance premiums, rising automobile insurance and health insurance premiums.

     Looking at GDP growth, Indonesia's economy is without  any dispute one of the global leaders. the trend has been set already some years ago and is not planned to know substantial decline-if any- over the next few years.