Great Eastern General Says IKN Budget Has a Positive Impact on Engineering Insurance
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IKN (Doc.ist) |
Printable.biz.id - Indonesia’s 8th President, Prabowo Subianto, has approved a budget of IDR 48.8 trillion for the continued development of the Nusantara Capital City (IKN) for the 2025-2029 period.
In light of this, general insurance company PT Great Eastern General Insurance Indonesia (GEGI) believes that the certainty of the IKN development budget will positively impact the insurance business.
According to Marketing Director of Great Eastern General Insurance Indonesia, Linggawati Tok, the impact arises from large-scale development projects such as the construction of office buildings, commercial and industrial facilities, transportation infrastructure, and utility networks in IKN.
"Additionally, the construction of public facilities will also require engineering insurance, including contractors all risks, erection all risks, and heavy equipment insurance," she stated to Kontan on Sunday (January 26).
However, Linggawati noted that these construction projects are typically dominated by state-owned insurance companies or State-Owned Enterprises (SOEs).
Nonetheless, Great Eastern General Insurance Indonesia aims to focus on securing a significant share in private commercial, industrial, and residential projects, as well as in heavy equipment.
In 2024, Linggawati reported that Great Eastern achieved engineering insurance premium revenue of IDR 88 billion, marking a 50% increase compared to the previous year.
"The growth in engineering insurance premiums was primarily supported by the contractors all risks and erection all risks segments, contributing 70%, heavy equipment insurance contributing 20%, and other types of insurance accounting for 10%," she explained.