Forecast: Share of Insurance and Financial Services in Service Exports in Indonesia

The share of Insurance and Financial Services in Indonesia's service exports has shown significant fluctuation over the past decade. While it started at a modest 1.22 units in 2013, it steadily increased to a peak of 7.8 units in 2021. However, it saw a dip back to 4.46 units in 2022, before rising again to 5.59 units in 2023, demonstrating the sector's volatility. The year-on-year growth rate for 2022 to 2023 stands at 25.3%, indicating a robust recovery. Over the last five years, the Compound Annual Growth Rate (CAGR) is 3.05%.

Going forward, the sector is projected to see continued growth, reaching 6.78 units by 2028. Key factors to monitor include:

• Regulatory changes impacting the insurance and financial sectors.
• Technological innovations driving efficiencies and new service offerings.
• Macroeconomic conditions both within Indonesia and globally.
• Consumer adoption and trust in digital financial services.