T

hree state-owned companies, Bank Mandiri, drugmaker PT Kimia Farma and insurance firm PT Asuransi Jasa Indonesia (Jasindo) have officially concluded the 80 percent acquisition of life insurer PT Asuransi Jiwa InHealth Indonesia (InHealth).

The takeover is part of the move to commercially strengthen InHealth, a subsidiary of state-run health
insurance company PT Askes.

With the acquisition, Bank Mandiri controls 60 percent of InHealth'€™s shares while Kimia Farma and Jasindo have 10 percent each. The remaining 20 percent stays with Askes

'€œWe have spent Rp 1.05 trillion (US$86.54 million) to acquire 60 percent of shares in InHealth,'€ Bank Mandiri president director Budi Gunadi Sadikin said after the signing ceremony on Monday.

State-Owned Enterprises Minister Dahlan Iskan witnessed the agreement.

Kimia Farma and Jasindo spent Rp 175 billion each on the takeover, according to the agreement.

Budi said that Mandiri would spend another Rp 350 billion next year to acquire the remaining shares currently still held by Askes, leaving the lender with an 80 percent shareholding in InHealth.

Askes president director Fachmi Idris said that his company had to divest its shares in InHealth to other state-owned enterprises because the government had designated PT Askes to become the Social Security Provider (BPJS) that would provide free health insurance to the public as of next year.

'€œHaving this responsibility, we are required to release our shares in our commercial business,'€ he said.

The divestment of InHealth, required by Law No. 24/2011 on the BPJS and a State-Owned Enterprises Ministerial decree, is aimed at allowing Askes to focus on its new role providing free health insurance.

'€œWe aim to boost InHealth'€™s premium income by 20 percent under our management from the current Rp 1.1 trillion,'€ said Budi, adding that the healthcare industry was growing by around 20 percent per year in the country.

'€œWe will also increase the company'€™s premium holders by 20 percent from the current 1.1 million people.'€

Budi added that the company would diversify its products to attract more premium holders, particularly in health-insurance products.

'€œThe insurance business in the country is very promising given the fact that annual health expenses amount to Rp 300 trillion, of which only 2.5 percent is covered by insurance,'€ he said, adding that in many other countries it accounts for 10 percent or more.

He said that Mandiri'€™s total insurance assets amounted to Rp 16 trillion with liabilities of Rp 460 trillion surpassing its core bank business liabilities of around Rp 440 trillion.

Currently, Mandiri has two subsidiaries in insurance, namely life insurer AXA Mandiri Financial Services and general insurance firm Mandiri AXA General Insurance.

Budi said that InHealth would be focused on the health-insurance business.

Meanwhile, Fachmi said in a press release that InHealth would be a complimentary health insurance provider for those who wanted to purchase more than the basic healthcare services provided by the BPJS.

'€œIt [InHealth] is to fulfill the needs of those who already have better access to healthcare services. It will provide affordable options other than free health insurance provided by the BPJS,'€ he added. (koi)