For local Indonesians, Third Party vehicle insurance is included through a levy in the vehicle registration fee called "Samsat".
I’ve never heard of any foreign traveller in Indonesia having a problem with the police for lack of insurance. No bike paperwork (registration & carnet), or international driving permit, or helmet etc. YES .. but lack of insurance... no.
The only insurance policies that you should be most concerned about are your travel insurance, and life insurance coverage. Read the small print of your travel policy and make sure that your covered to ride big displacement bikes overseas .. and the beneficiary(ies) is/are up-to-date on your life insurance. Also that your premiums are fully paid .. and then carry on.
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