"Kadin Indonesia recognizes the important role of the reinsurance industry in promoting sustainability and accelerating the renewable energy transition by providing financial stability and risk mitigation," Kadin chair Arsjad Rasjid said here on Wednesday.
The reinsurance industry allows insurance companies to offer wider coverage in boosting green economy investment, he expounded.
Indonesia, under its Enhanced Nationally Determined Contributions (ENDCs), is looking for more ambitious steps to achieve its climate targets, namely reducing greenhouse gas emissions by 31.89 percent by 2030 and net zero by 2060 or earlier.
However, there are risks in the transition to a green and sustainable economy, such as investments with a high level of uncertainty. These risks are difficult to predict due to the lack of historical data.
"This is where the insurance industry, including reinsurance companies, can take part in (mitigating) these risks and make green investment more viable and safe for investors," Rasjid explained.
He said he is optimistic that strong collaboration among industries, both private and state-run, and global partners, will help realize a green, resilient, and future-ready Indonesia.
"Together towards sustainable growth, we can achieve the Golden Indonesia 2045, which is 100 years after Indonesia's independence," he added.
A reinsurance company helps insurance companies manage their risk.
Reinsurance companies in Indonesia require a business license from the Financial Services Authority (OJK).
On a separate occasion, the president director of Indonesia Re, Benny Waworuntu, said that Indonesians' interest in insurance is still low.
"Reinsurance and insurance companies have a very critical role in maintaining economic rotation and people's quality of life," he added at the Indonesia Re International Conference 2024 in Jakarta.
Related news: National health insurance program spending increases in 2023: govt
Related news: Governance, digitalization key to developing Islamic insurance: VP
Translator: Aji C, Kenzu
Editor: Rahmad Nasution
Copyright © ANTARA 2024
