The transaction is subject to necessary regulatory approvals by Indonesian authorities.
As part of the deal, Nippon Life Insurance has invested 43 billion yen ($393.3 million) to acquire a 20% stake in Sequislife.
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Through this transaction, Nippon Life plans to send a commissioner, board directoe and support staff to Sequislife, a subsidiary of PT Gunung Sewu Kencana.
The acquisition comes as Nippon Life seeks to expand its footprint in the Southeast Asian market.
Nippon Life said: "The Indonesian life insurance market has been growing robustly against the backdrop of the fourth-largest population in the world of around 250 million and a growing middle class population."
"This high growth is expected to continue in light of the lower life insurance penetration in Indonesia relative to those of developed nations," it added.
