ENG
English
Bahasa Indonesia
7 Mins read
Copied!
The Financial Services Authority (OJK) sets regional tariff zones for car insurance to regulate fair minimum and maximum premium rates. This article explores how these zones are divided, how they affect All Risk and Total Loss Only (TLO) premiums, and how you can estimate your premium range based on your residential location.
Car insurance premium prices are often one of the first questions prospective policyholders ask. But did you know that your residential location plays a role in determining how much you’ll pay?
Yes, alongside factors like the car's age and the type of coverage chosen, OJK’s tariff zones are a key consideration in premium calculations for both All Risk and Total Loss Only (TLO) car insurance.
According to Indonesia’s Financial Services Authority (OJK), only around 19% of motor vehicles in Indonesia are insured. Most of these insurance policies come from Zone 2 regions, such as Jakarta and its surrounding areas. OJK regulates the minimum and maximum car insurance premium rates to ensure fairness for both consumers and insurance providers.
In this article, we’ll cover:
What OJK tariff zones are
The zoning classifications and provinces included in each
How these zones impact All Risk and TLO premium prices
A sample premium simulation based on your zone
Smart tips for choosing the right car insurance
This article is especially valuable if you're buying car insurance for the first time or comparing premiums across different regions.
Before we explore premium simulations and how your region affects insurance costs, let’s first understand what OJK tariff zones are and how these groupings are determined.
The Financial Services Authority (OJK) regulates motor vehicle insurance premiums through OJK Circular Letter No. 6/SEOJK.05/2017, which divides Indonesian provinces into three tariff zones. This classification aims to adjust premium rates based on risk levels, claim costs, and geographic or socioeconomic conditions.
Under this regulation, Indonesia is grouped into three zones, each reflecting different risk profiles. Here's how the regions are structured:
Zone |
Included Provinces/Areas |
|---|---|
Zone 1 |
All of Sumatra and surrounding islands |
Zone 2 |
DKI Jakarta, West Java, and Banten |
Zone 3 |
Central Java, Yogyakarta (DIY), East Java, Kalimantan, Sulawesi, Bali, NTT, NTB, Papua, and others |
Disclaimer: This classification is based on OJK’s official regulation and may be updated as new policies are issued. Always refer to your insurance provider for the most accurate zone classification.
Zone 2, particularly Jakarta and surrounding areas, tends to have higher premiums due to dense traffic, higher accident rates, and flood risks.
So, how does this zoning structure affect the premium you pay each year?
Let’s take a closer look at the premium structure set by OJK in the next section.
Car insurance premiums are determined based on the tariff range set by OJK. Here's an example:
Car value |
Tariff |
||
|---|---|---|---|
Zone 1 |
Zone 2 |
Zone 3 |
|
< IDR 125 million |
0.20% – 0.39% |
0.20% – 0.42% |
0.21% – 0.43% |
Rp200 million |
0.38% – 0.44% |
0.44% – 0.53% |
0.38% – 0.50% |
Disclaimer: This table is for informational purposes only. Actual premiums may vary depending on the insurer’s policy and the condition of your vehicle.
In addition to TLO, OJK also regulates premium ranges for All Risk (Comprehensive) insurance, which offers broader protection. Below is a comparison of All Risk premium rates by region:
Car value |
Tariff |
||
|---|---|---|---|
Zone 1 |
Zone 2 |
Zone 3 |
|
< IDR 125 million |
2.00% – 2.08% |
2.47% – 2.72% |
2.53% – 2.78% |
Rp250 million |
2.08% – 2.29% |
2.61% – 2.87% |
2.69% – 2.94% |
Disclaimer: Figures are based on OJK Circular Letter and are for illustration only. Actual premiums may vary depending on vehicle condition, regional risk, and optional coverage features.
To provide a more realistic picture, here’s a sample annual All Risk premium simulation for a popular vehicle like the 2023 Toyota Avanza, based on the zone where the car is registered:
Zone |
Insurance Type |
Average Tariff |
Estimated Annual Premium |
|---|---|---|---|
Zone 1 |
All Risk |
2.10% |
IDR 5,250,000 |
Zone 2 |
All Risk |
2.75% |
IDR 6,875,000 |
Zone 3 |
All Risk |
2.85% |
IDR 7,125,000 |
Disclaimer: This is an illustrative simulation. Actual premiums may vary based on vehicle condition, zone, age, and your chosen insurance provider.
Now that you understand how premiums are calculated based on your zone, let’s look at how you can choose the right policy without overpaying. Here are a few practical tips to help you find the best protection for your needs.
Now that you understand the differences between OJK’s tariff zones, you can make more informed decisions when purchasing a car insurance policy. Here are some practical tips:
Premiums are calculated based on where the vehicle is registered. If you live in Jakarta but your car’s STNK is registered in another city, your premium rate could differ.
If you live in flood-prone areas like West Jakarta or Tangerang, consider All Risk coverage with flood protection add-ons.
Try Oona’s car insurance calculator to estimate your premium based on your location and vehicle type. Explore Oona Car Insurance products today!
If your car is new or worth over IDR 200 million, All Risk coverage is typically more suitable. For older vehicles or limited-use cars, TLO may be a more cost-effective option.
Understanding OJK's regional tariff zones not only helps you estimate your car insurance premium, it also gives you better insight into the risk profile of the area where your vehicle is registered.
Whether you live in Jakarta (Zone 2) with higher traffic and flood risks, or in regions outside Java with typically lower risks (Zones 1 and 3), choosing the right car insurance is essential for long-term financial protection.
By knowing:
The premium differences across regions
How zoning impacts All Risk vs. TLO insurance options
Realistic simulations and money-saving tips
You can make smarter, better-informed decisions tailored to your vehicle’s needs.
Get an instant estimate now at Oona Car Insurance and discover the best protection based on your zone. Because the right premium isn’t always the cheapest, it’s the one that best matches your risk profile.
