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Jakarta Post

Samsung Indonesia VP owed Rp 8.2 billion by struggling state insurance firm Jiwasraya

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, December 5, 2019   /   03:27 pm
Samsung Indonesia VP owed Rp 8.2 billion by struggling state insurance firm Jiwasraya PT Samsung Electronics Indonesia vice president Lee Kang Hyun. (kompas.com/Josephus Primus)

The liquidity problems hounding state-owned insurance Asuransi Jiwasraya has not only affected Indonesian citizens but foreigners as well, including the South Korean vice president of PT Samsung Electronics Indonesia, Lee Kang Hyun.

Lee and 47 other foreign nationals, went to the House of Representatives Commission VI overseeing industrial and investment matters to lodge a complaint over the matter on Wednesday. 

Jiwasraya’s problems date back to late last year, when the company was forced to postpone the payment of mature policies that were marketed through various banks as bancassurance worth Rp 802 billion (US$54.14 million). The policies should have been paid in October 2018.

The company booked losses of Rp 15.89 trillion in 2018 and Rp 13.74 trillion during the first nine months of 2019.

Lee said he had policies totaling Rp 16 billion at Jiwasraya. “Eight billion has been paid but the remaining Rp 8.2 billion is still with Jiwasraya,” he told reporters as quoted by kompas.com.

Besides Lee, 47 other South Korean citizens had been affected by the payment postponement as Korean bank KEB Hana had offered Jiwasraya bancassurance products to its customers in Indonesia.

Lee said at first the Koreans were not worried about Jiwasraya’s initial postponement in October 2018 because it was a state-owned company. But concerns have grown as a year has passed with no news.

“Many of the Koreans that have become victims are women because for Koreans usually family finances are handled by the women,” he said. “Many of these women’s husbands have already finished their assignments [in Indonesia] but have not gone home because of this money. One woman’s husband has even died but she cannot return to Korea because of this issue.”(kmt)