Socioeconomic and Regional Determinants of Inclusive Insurance Participation in Indonesia

Inclusive insurance plays a critical role in reducing household vulnerability in developing countries such as Indonesia. This study investigates the factors influencing inclusive insurance participation across regencies in the Special Region of Yogyakarta Province using multinomial logistic regression and stereotype logistic regression. Insurance participation status is classified into three categories: uninsured, government-subsidized, and insured-without-support. Socioeconomic, demographic, and regional characteristics are examined. The results indicate that households with higher spending, higher education, and formal employment are less likely to be uninsured or to rely on government-subsidized insurance. Urban residence has varying effects across regencies. Furthermore, the results from the stereotype logistic regression model suggest that the uninsured group is conceptually closer to the government-subsidized group than to the insured-without-support group. These findings highlight the need for targeted, region-specific policies to expand coverage and facilitate transitions toward stable, non-subsidized insurance, thereby promoting inclusive insurance in Indonesia.