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tate-run life insurance firm PT Asuransi Jiwasraya and general insurance company PT Asuransi Ekspor Indonesia (ASEI) are partnering to expand their businesses and minimize risks.

Under their partnership agreement, which was signed on Friday, the companies will cooperate in marketing their products, aimed at retail customers, and their loans.

While Jiwasraya will manage the life aspect for its customers, ASEI will at the same time ensure the commercial aspects of the credit.

Gatot Trihargo, the State-Owned Enterprises Ministry'€™s deputy for business services who attended the signing ceremony, said the partnership was part of a business synergy mandated by the ministry to all state-owned enterprises.

Jiwasraya marketing director De Yong Adrian said the two companies had been involved in a series of collaborations in the past, but on a much smaller scale.

'€œIn a sense, those partnerships were more voluntary, meaning that if we obtained a business opportunity, ASEI had a choice to participate in it or not, and vice versa,'€ he said.

'€œNow the partnership is mandatory,'€ he added.

According to De Yong, the past partnerships generated only around Rp 50 billion (US$4.1 million) in premium income for the firms.

'€œThis year, we aim to book at least Rp 210 billion,'€ he said.

To reach the target, De Yong said they would intensify each other'€™s networks and agents.

At the moment, Jiwasraya runs 17 regional offices and 71 branches, while ASEI operates 21 branches and 33 marketing offices.

ASEI finance director M. Syamsudin Cholid said an increase in its consumptive credit insurance segment would also help the companies achieve the target.

'€œMost of ASEI'€™s contribution to the partnership has been generated by the segment,'€ he said.

'€œIn 2014, we hope to see a rise of between 30 percent and 40 percent in that segment, both in premium amounts and customer numbers,'€ he added.

As of now, consumptive credit insurance is included on ASEI'€™s top-five list of insurance segments.

In its own business, ASEI hoped to book 30 to 40 percent growth, supported by rupiah depreciation and the upcoming elections, Syamsudin said.

'€œThe weakening currency is playing a role in higher demand for Indonesian products abroad,'€ he said.

'€œMeanwhile, the elections will benefit us because we are set to insure a lot of election-related equipment,'€ he added.

ASEI has not yet published its full-year 2013 report.

From January to November, it posted Rp 981.04 billion in total gross premiums. It also booked Rp 134.3 billion from its underwriting business and Rp 64.35 billion in investment returns.

Meanwhile, according to De Yong, the company has set its premium income target for 2014 at Rp 8 trillion to Rp 9 trillion, climbing by between 18 and 32 percent from Rp 6.79 trillion in 2013.

By the end of last year, Jiwasraya reportedly had Rp 10.6 trillion in total assets and had reaped Rp 1.7 trillion from investment returns.