The Jakarta Post
The Financial Services Authority (OJK) has allowed insurance company PT Asuransi Jiwa Bersama Bumiputra (AJB Bumiputra) to resume operations after the OJK canceled its restructuration plan to save the company.
“We change the old plan because it prevented cash inflow. We canceled the plan and we agreed to allow AJB Bumiputra to operate,” said said OJK head Wimboh Santoso in Jakarta on Thursday as reported by tribunnews.com.
Under the new plan, three subsidiaries of ABJ Bumiputra will also be allowed to operate again and to sell its products through its three subsidiaries.
He called on policyholders of the insurance company to stay calm as business and the funding aspects of the company were taking place normally.
The financial performance of the company had been worsening in the recent years since revenue from the premiums could not cover the obligation payment to the policy holders.
In October 2016, the OJK started the process to save the company, but there had been no progress since then. Earlier this week, a number of policyholders threatened to file legal complaints to the government as they saw no program for the OJK’s restructuration plan.
Wimboh admitted the restructuration by the OJK had failed to help AJB Bumiputera become a healthy company. He said the OJK needed a more comprehensive approach to help AJB Bumiputra.
He added that among the efforts to help ABJ Bumiputra included improvements of the institution structure, management and human resources, information technology systems and distribution and marketing. (bbn)