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Jakarta Post

AGO to announce Jiwasraya suspects, sees indications of 'legal violations'

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Wed, January 8, 2020   /   05:28 pm
AGO to announce Jiwasraya suspects, sees indications of 'legal violations' The office of state-owned insurance company PT Asuransi Jiwasraya in Jakarta (kontan.co.id/Cheppy A Muchlis)

The Attorney General’s Office (AGO) plans to announce in the next 10 weeks a list of suspects in a “gigantic” case implicating troubled state-owned insurer Asuransi Jiwasraya that could “potentially carry systemic risk” for the country’s financial industry, authorities say.

Attorney General ST Burhanuddin told the press on Wednesday that his office identified the suspects after interviewing 98 witnesses and investigating 5,000 transactions related to the case.

“We have questioned 98 witnesses and there are indications of legal violations in the case, but we can’t reveal details yet because we’re waiting for the Supreme Audit Agency [BPK] to announce the total state losses,” Burhanuddin said during a press briefing in Jakarta.

In the meantime, BPK chairman Agung Firman Sampurna said the agency was currently investigating the total state losses incurred by the government from the case. 

The BPK will conduct the investigation carefully as the scale of the case is “gigantic and could potentially carry systemic risk” for the country’s financial industry, he added.

“We will announce the results of the first phase of our investigation in the next two to two-and-a-half months,” Agung told reporters in Jakarta on Wednesday.

Jiwasraya met with trouble following an announcement in October 2018 that it had failed to pay out maturing JS Saving Plan policies worth Rp 802 billion. It was also unable to pay out holders of policies worth Rp 12.4 trillion that were supposed to be paid in December 2019.

According to a Jiwasraya document obtained by The Jakarta Post, the insurer suffered negative equity of Rp 23.92 trillion as of September 2019. The insurer also booked a loss of Rp 13.7 trillion during the same period, according to the BPK.