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Jakarta Post

No talks on a bailout for Jiwasraya, audit agency says

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, March 6, 2020   /   08:07 am
No talks on a bailout for Jiwasraya, audit agency says A pedestrian walks in front of one of the Jiwasraya offices in Jakarta on Jan. 15. (JP/Wendra Ajistyatama)

The Supreme Audit Agency (BPK) has said that they did not discuss a bailout or a state capital injection to solve state-owned insurer PT Asuransi Jiwasraya's problems and save it from bankruptcy. 

BPK Head Agung Firman Sampurna said on Wednesday that the discussion on Jiwasraya’s future did not reach a discussion on a bailout. 

“We never ever said there should be a capital injection [to solve Jiwasraya case]. What the AGO [Attorney General’s Office] and BPK are doing is protecting the rights of Jiwasraya policyholders,” said Agung, as quoted by Kontan.co.id

Read also: State capital injection last resort to rescue Jiwasraya: Government

The State-Owned Enterprises (SOE) Ministry previously stressed that a capital injection into Jiwasraya would be a last resort in the government's effort to rescue the ailing insurance company as the ministry and the House of Representatives were discussing several scenarios to save the insurer from bankruptcy and help it pay its policyholders’ claims.

Jiwasraya has been in the spotlight following its failure to pay its customers’ matured policies, worth trillions of rupiah due to investment mismanagement, prompting the AGO to launch a corruption investigation. The AGO has named five suspects and detained all of them.

BPK claimed it had found out the total amount of losses suffered by the state from the case but would make an official report next week.

“We are currently having an intense communication with our colleagues at the AGO,” Agung said. “We will announce the results next Monday.” (roi)