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OJK strips state-owned insurer Jiwasraya of business license
The OJK has revoked the business license of PT Asuransi Jiwasraya, effective on Thursday, in the latest development related to an ongoing graft probe into the state-owned life insurance firm.
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Defendants in the PT Asuransi Jiwasraya fraud trial attend their indictment hearing at the Jakarta Corruption Court on June 3, 2020. (Antara/Galih Pradipta)
T
he Financial Services Authority (OJK) has revoked the business license of life insurance firm PT Asuransi Jiwasraya, a state-owned enterprise (SOE), in a move intended to protect policyholders.
Effective from Thursday, Jiwasraya is prohibited from conducting life insurance activities and had to cease all business operations.
In addition, the firm’s shareholders, directors, board members and employees are all prohibited from any action that could diminish the value of Jiwasraya’s assets, such as transfers, pledges and other forms of utilization.
According to an OJK statement issued on Thursday, the firm is required to submit a closing balance sheet to the authority and hold a general meeting of shareholders (RUPS), no later than respectively 15 days and 30 days from the effective date of the revocation.
“The RUPS will decide on the dissolution of Jiwasraya as a legal entity and form a liquidation team,” the statement said.
Shareholders, executive management and staff must provide any data and documents requested, and are prohibited from obstructing the liquidation process.
Read also: AGO nabs finance ministry official in Jiwasraya graft case
