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Jakarta Post

Relaxed foreign ownership rule for insurers could save Jiwasraya: Experts

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Wed, January 29, 2020   /  07:55 am
The Jakarta Post Image
Office of state-owned insurance company PT Asuransi Jiwasraya in Jakarta( A Muchlis)

Foreign investors can now own a more than 80 percent stake in Indonesian insurance companies after the authorities that oversee the industry currently embroiled in cases of financial mismanagement committed to making regulatory reforms and tightening oversight in an effort to restore public trust. Government Regulation No. 3/2020 on the insurance industry, signed by President Joko “Jokowi” Widodo on Jan. 16, revises an earlier rule that caps foreign ownership in local insurers at 80 percent. The new regulation allows foreign investors to purchase a more than 80 percent stake in local insurers if they wish to add paid-up capital, but only through initial public offerings via the Indonesia Stock Exchange (IDX) and only if no domestic investors are interested. Indonesia Insurance Council (DAI) chairman Dadang Sukresna said the regulatory relaxation would provide leeway ...