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Jiwasraya scandal sends ripples through financial industry
Insurance companies, investment management businessesand even cooperatives have been reportedly having liquidity problems after the Jiwasraya revelations.
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Office of state-owned insurance company PT Asuransi Jiwasraya in Jakarta. (Antara/Galih Pradipta)
S
tate-owned insurer PT Asuransi Jiwasraya’s investment mismanagement case has had a ripple effect on other companies in the financial industry.
Insurance companies, investment management businesses and even cooperatives have been reportedly having liquidity problems after the Jiwasraya revelations.
Read also: WanaArtha Life’s securities accounts blocked by AGO in Jiwasraya trickle down effect
On Feb. 12, privately-owned life insurer PT Asuransi Jiwa Adisarana Wanaartha (WanaArtha Life) issued a letter to its policyholders acknowledging that its securities accounts had been frozen by the Attorney General’s Office (AGO) in connection with the office’s investigation of a corruption case pertaining to Jiwasraya’s fund management.
On Jan. 24, the Attorney General’s Office (AGO) ordered the suspension of 800 securities accounts related to Jiwasraya as part of its ongoing investigation to uncover alleged corruption in the ailing insurer, which is suspected to have resulted in the company’s failure to repay policyholders’ claims totaling Rp 16 trillion (US$1.17 billion) as of January.
Read also: AGO uncovers millions of suspicious transactions involving Jiwasraya’s investment instruments
The suspension itself disrupted the insurer’s ability to pay its policyholders, president director Yanes Matulawata wrote in the letter.
