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Jakarta Post

Jiwasraya could have knock-on effect on financial sector

  • Riska Rahman and Ghina Ghaliya

    The Jakarta Post

PREMIUM
Jakarta   /   Fri, January 10, 2020   /  10:49 am
The Jakarta Post Image
Office of state-owned insurance company PT Asuransi Jiwasraya in Jakarta(kontan.co.id/Cheppy A Muchlis)

High-ranking officials have expressed concern that the fiasco at state-owned insurance company Asuransi Jiwasraya will undermine faith among the public and investors in the country’s financial institutions. State-owned Enterprises Minister Erick Thohir gave an assurance on Thursday that the government would take several measures, including establishing an insurance holding company, to ensure Jiwasraya has sufficient cash flow to gradually pay out on its customers’ matured policies. “We will try to [make the payments] as we don’t want public trust to dissipate while we are talking about [attracting] investment,” he told reporters in Jakarta. “We know that our economic growth is high but we don’t have good corporate governance. How can the public trust [Indonesia’s financial system]?” he added. Jiwasraya has been in the spot...