TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

AGO issues travel ban for 10 people allegedly involved in Jiwasraya troubles

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, December 27, 2019   /   06:13 pm
AGO issues travel ban for 10 people allegedly involved in Jiwasraya troubles Office of state-owned insurance company PT Asuransi Jiwasraya in Jakarta (Tempo/Tony Hartawan)

Attorney General Sanitiar Burhanuddin has issued a travel ban for 10 people allegedly involved in the case of state insurer PT Asuransi Jiwasraya to prevent them from leaving the country amid an ongoing investigation into possible corruption within the company.

Jiwasraya met with trouble when it was unable to pay matured policies worth Rp 12.4 trillion (US$892.2 million). The policies were supposed to be paid off in December this year.

Investigators have questioned 89 witnesses but are yet to name any suspects. The travel ban for the 10 people was issued on Dec. 17.

“That is correct, [they] could potentially be named suspects,” Burhanuddin said at the Attorney General’s Office in Jakarta on Friday, kompas.com reported.

He said his office had cooperated with the immigration office to enforce the ban, which came into effect on Dec. 26 and will remain in place for six months.

Some of Jiwasraya’s former directors have reportedly flown overseas to avoid investigation.

Former Jiwasraya president director Hendrisman Rahim reportedly flew to Madrid, while former financial director Hary Prasetyo reportedly flew to London.

Jiwasraya has faced close scrutiny by the Financial Services Authority (OJK) after it was revealed the company needed a Rp 32.9 trillion ($2.3 billion) capital injection to boost its risk-based capital ratio to the minimum requirement of 120 percent, Reuters reported, quoting company documents.

The government previously announced it did not intend to bail out Jiwasraya, which booked losses of Rp 15.89 trillion in 2018 and Rp 13.74 trillion during the first nine months of 2019.

Finance Minister Sri Mulyani Indrawati said that Jiwasraya’s failure to pay its matured policies was a legal matter that would require the involvement of the police, the Attorney General’s Office and the Corruption Eradication Commission (KPK). (ami)