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Jakarta Post

Jiwasraya: Understanding Indonesia's largest financial scandal

The Jakarta Post Image
Defendants wear face shields and masks as they sit in chairs configured to comply with physical distancing rules on Wednesday, during a hearing of the corruption case in state insurer PT Jiwasraya at the Jakarta Corruption Court in Central Jakarta. (JP/Dhoni Setiawan)
Galih Gumelar (The Jakarta Post)
Jakarta   ●   Mon, October 26, 2020

The corruption scandal surrounding state-owned insurer PT Jiwasraya, which has caused the largest state losses in the country’s history, has shown that Indonesia’s capital market is still not a safe place for local and international investors.

The company’s three executives, former president director Hendrisman Rahim, former financial director Hary Prasetyo and former finance and investment division head Syahmirwan, have been sentenced to life in prison for embezzling insurance premium revenue, resulting in Rp 16.8 trillion (US$1.15 billion) in state losses.

They had traded and invested the fund in multiple low quality assets over the course of 10 years, allegedly with the help of asset management companies, businessmen and fund managers that had allegedly manipulated the fund for their own personal gain.  

The three executives were...

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