Independent actuaries play a very important role in the supervision of insurance and pension fund industries, and in the application of accounting standards for defined benefit post-employment which is mandatory in Indonesia. This triggered rapid growth in actuarial consulting services.
Actuarial consulting is an extension of the regulator in auditing actuarial practices and implementation actuarial principles in insurance companies.
Pension Fund Institutions in Indonesia need an actuarial technique and assumption to calculate valuation of solvability and contributions, while those which have defined benefit programs are required to engage actuarial consulting.
Indonesia has a Labor Law which mandates the application of the stipulated defined benefit post-employment severance program. Therefore, audited companies are required to calculate their post-employment and other long-term benefit liabilities using actuarial techniques and methods in accordance with the Indonesia accounting standard.