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Jakarta Post

Jiwasraya’s losses from investing in questionable stocks estimated to reach Rp 13t

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Wed, February 19, 2020   /   06:38 pm
Jiwasraya’s losses from investing in questionable stocks estimated to reach Rp 13t A man uses state-owned insurer PT Asuransi Jiwasraya's android application on his smartphone in Jakarta on Feb. 14. (JP/Jerry Adiguna)

State-owned insurer PT Asuransi Jiwasraya has claimed that the losses it suffered from investing in several questionable stocks exceed those of social insurer Asuransi Sosial Angkatan Bersenjata Republik Indonesia (Asabri).

Jiwasraya president director Hexana Tri Sasongko estimated on Wednesday that the insurer suffered a loss of Rp 13 trillion (US$ 949.65 million) from its investments in stocks of companies affiliated with businessmen Heru Hidayat and Benny Tjokrosaputro.

Both businessmen have been named suspects and detained by the Attorney General’s Office (AGO) in the Jiwasraya corruption case.

“The majority of our investment in stocks and equity mutual funds has been impaired and decreased our investment value,” he told the press after a hearing with House of Representatives’ Commission VI overseeing state-owned companies and trade, in Jakarta.

He added that the total losses the company suffered from investing in the two businessmen’s companies’ stocks were still being audited by the Supreme Audit Agency (BPK).

The alleged investment mismanagement in Jiwasraya has been investigated for corruption after the insurer failed to pay out more than Rp 16 trillion in matured insurance policies as of January to its customers. The AGO has named five suspects, including two of Jiwasraya’s former executives, in the case.

In the meantime, Asabri claimed that its losses from investing in similar stocks could reach Rp 11.4 trillion, higher than its previous claim of Rp 10.9 trillion last month.

President director Sonny Widjaja said the insurer, which handles the social insurance and pension funds for the National Police, the Indonesian Military and employees of the Defense Ministry, had secured a commitment from both businessmen to compensate for the losses.

“We will utilize the police force to collect the money [from Heru and Benny] because we don’t have the authority to take away their assets,” he said during the hearing.