Indonesia’s takaful market is entering a new phase of expansion, supported by a sharp rise in financial literacy from 9.14% in 2022 to 43.42% in 2025, alongside one of the world’s largest Muslim populations exceeding 245 million.
The government’s commitment to the sharia economy has been a major catalyst, with the sector now included in Asta Cita point no. 2 as a pillar of national resilience, alongside the food, energy, digital, green and blue economies. The Sharia Economy Vision 2029, integrated within Visi Indonesia Emas 2045, outlines the country’s ambition to become the world’s leading halal and sharia economy by 2029.
This direction is further reinforced by initiatives such as the spin-off of takaful units to create stronger and more independent insurers.
Chief Executive Officer of Prudential Syariah Indonesia, Iskandar Ezzahuddin, said, “Malaysia’s experience and maturity in takaful insurance, combined with Indonesia’s scale and demographic bonus, are complementary strengths. Working together, we can widen takaful insurance protection access for families and become a global leader in the takaful industry within ASEAN.”
He added that collaboration and knowledge sharing between Indonesia and Malaysia could create a “takaful superpower” in the region.
Prudential Syariah, a market leader in Indonesia’s private joint venture takaful life industry, reported IDR 3.4 trillion in contributions and protection for nearly half a million participants. The company works with Bank Syariah Indonesia and Islamic organisations such as Nahdlatul Ulama and Muhammadiyah, supported by a network of over 80,000 sharia-trained agents.
“We believe collaboration is key. We are always happy to welcome business partners from Malaysia who want to learn, exchange experiences, or share expertise with us,” said Iskandar. “This spirit of collaboration will allow both markets to grow stronger together and to build a more resilient and inclusive sharia industry across ASEAN.”
