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Trump tariffs to hit trade, marine cargo credit insurance
OJK encourages insurance firms to continue strengthening their risk management, diversifying both their investment portfolios and products to cushion against global economic volatility.
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Cargo trucks park in a line at a container terminal at Tanjung Priok Port in North Jakarta in this undated photograph. (Antara/Rivan Awal Lingga)
T
he Financial Services Authority (OJK) has warned that the United States tariffs could impact insurance products tied to international trade, particularly marine cargo and trade credit insurance.
The agency noted that the tariffs could disrupt global supply chains, leading to shipping delays and potential damage to goods in transit. This, in turn, will increase the relevance and risk exposure of marine cargo insurance.
At the same time, rising raw material costs driven by the tariffs could heighten the risk of payment defaults in trade credit, especially among firms heavily involved in US-related export-import activities.
“The OJK encourages insurance firms to continue strengthening their risk management, diversifying both their investment portfolios and products to cushion against global economic volatility,” said Ogi Prastomiyono, the OJK’s head of insurance, guarantees and pension funds, in a statement on Friday.
“Insurers are also expected to be more transparent in managing risks tied to international market fluctuations and to educate their customers accordingly,” he added.
Read also: US 'appreciates' Indonesia’s proposal on bilateral trade
Delil Khairat, technical operations director at state-owned reinsurer Indonesia Re, acknowledged growing risks for marine cargo and trade credit insurance as a result of the additional tariffs imposed on Indonesian goods by US President Donald Trump.
