Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Arsjad Rasjid, said reinsurance has an important role in supporting the energy transition in Indonesia. Related to this, the world community also targets to reduce greenhouse effect gases by 31.89% by 2030 and reach net zero by 2060 or earlier.

"However, there are risks associated with the transition to a green and sustainable economy. For example, there are many investment possibilities with a high degree of uncertainty. These risks are difficult to predict due to a lack of historical data,’ Arsjad said at the Indonesia Re International Conference (ICC) 2024, held last week.

Therefore, reinsurance companies have an important role in suppressing investors' anxiety through their ability to accept the distribution of risks. With insurance and reinsurance that can absorb the risks of these investors, efforts to absorb environmentally friendly investments can be more pursued and safe for investors.

‘As a shelter for business and industry players in Indonesia, Kadin Indonesia recognises the important role of the reinsurance industry in promoting sustainability and accelerating the renewable energy transition by providing financial stability and risk mitigation, as well as enabling insurance companies to offer wider coverage to encourage green economy investment,’ Arsjad explained.

According to him, with the spirit of ‘Gotong Royong’, strong collaboration between the private sector and government as well as international parties is needed to build a green, resilient and future-ready Indonesia. The hope is that through these steps, we can achieve a Golden Indonesia 2045, which coincides with the momentum of 100 years after Indonesia's independence towards sustainable growth.