Indonesia's Compulsory Motor Insurance

Indonesia's Compulsory Motor Insurance offers an in-depth exploration of the legal and policy frameworks governing mandatory motor vehicle insurance in Indonesia. At the heart of the discussion is the complex interplay between state authority, public service obligations, and market competition particularly through the case of Jasa Raharja, the sole state-appointed insurer tasked with managing compensation for traffic accidents. The book begins by establishing the theoretical and legal foundations of monopoly and insurance regulation, including a comparative overview of how different legal systems approach compulsory insurance. It then delves into Indonesia's specific regulatory environment, including Law No. 40 of 2014 on Insurance, Law No. 5 of 1999 on Anti-Monopoly Practices, and Article 51's exemption clause which permits monopolies for the sake of public interest. Through a systematic analysis of overlapping laws, institutional conflicts, and enforcement challenges, the book sheds light on the tensions between maintaining public protection and introducing competitive insurance models. It also offers comparative insights from other compulsory insurance schemes such as workers' compensation and aviation insurance to highlight global best practices and reform pathways. This volume concludes by proposing future regulatory strategies that balance the goals of fairness, accessibility, and sustainability in a gradually liberalized insurance market. Emphasizing both legal coherence and economic pragmatism, this book serves as an essential resource for legal scholars, policymakers, insurance professionals, and students interested in the evolving dynamics of public interest insurance in emerging economies..