INDONESIA POSTPONES CAPITAL REGIME UNTIL 2010

RULES to introduce a minimum capital regime for insurers in Indonesia will not now come into force until next year after lobbying by the country’s insurance industry. The proposals had originally called for insurers to have minimum capital of Rp40bn by the end of last year, rising to Rp70bn this year and Rp100m by the end of 2010. The new timeframe now requires insurers in Indonesia to have capital of Rp40bn by the end of next year, Rp70bn by the end of 2012 and Rp100bn by the end of 2014. The Indonesian financial regulator said its decision to postpone the introduction of the new regime was prompted by the global economic crisis.