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AGO nabs finance ministry official in Jiwasraya graft case
The AGO has detained the Finance Ministry's Isa Rachmatarwata as a suspect over his alleged role in the Jiwasraya corruption case during his tenure as insurance bureau chief at Bapepam-LK.
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Investigators escort Finance Ministry budget director general Isa Rachmatarwata (center, in pink vest) to a prisoner transport vehicle on Feb. 7, 2025, after he was detained as a suspect following his interrogation as a witness in the Jiwasraya graft case at the Attorney General's Office (AGO) in Kebayoran Baru, South Jakarta. (Antara/Hafidz Mubarak A.)
T
he Attorney General’s Office (AGO) has detained Isa Rachmatarwata, budget director general at the Finance Ministry, as a suspect in a corruption case pertaining to state insurer PT Asuransi Jiwasraya following his interrogation on Friday as a witness.
He is being held for 20 days at Salemba Detention Center in Central Jakarta.
The case against Isa dates back to 2006-2012, when he headed the insurance bureau of the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) and is alleged to have been involved in launching Jiwasraya’s JS Saving Plan, a bancassurance product that integrates life insurance and investment.
Sofyan Djalil, who was State-Owned Enterprises (SOEs) minister at the time, declared Jiwasraya insolvent in 2009 after the state-owned insurer recorded negative equity of Rp 5.7 trillion (US$593 million) the year prior.
Sofyan proposed a Rp 6 trillion bailout plan to restore the insurer’s condition, but then-finance minister Sri Mulyani Indrawati rejected the plan because the firm had a risk-based capital ratio of minus 580 percent, far below the minimum 120 percent required by the Financial Services Authority (OJK).
To cover its losses, Jiwasraya’s president director Hendrisman Rahim, financial director Hary Prasetyo and finance and investment head Syahmirwan introduced the JS Saving Plan, which offered interest rates of between 9 and 13 percent, higher than Bank Indonesia’s maximum rate of 8.75 percent.
In his role as the head of Bapepam-LK’s insurance bureau, Isa allegedly authorized the launch of the bancassurance product despite “knowing that [Jiwasraya] was being [declared] insolvent,” AGO spokesperson Harli Siregar said in a statement on Friday.
