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View all search resultsMinistry to restructure Jiwasraya policies, establish new life firm
State-Owned Enterprises Deputy Minister Kartika “Tiko” Wirjoatmodjo said the ministry made a proposal to the House of Representatives to restructure all of Jiwasraya’s life insurance policies.
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T
he State-Owned Enterprises (SOEs) Ministry is planning to restructure state-owned insurance company PT Asuransi Jiwasraya’s policies before carrying them over to a new company and dissolving the ailing insurer.
Deputy Minister Kartika “Tiko” Wirjoatmodjo said the ministry made a proposal to the House of Representatives to restructure all of Jiwasraya’s life insurance policies.
Should the House agree to the scheme, the ministry will instruct state-owned insurance holding firm PT Bahana Pembangunan Usaha Indonesia (BPUI) to start negotiations with policyholders in August. The negotiations are expected to conclude in December 2021.
In the meantime, BPUI will establish a new life insurance company, PT Nusantara Life, which will then hold all of Jiwasraya’s restructured policies. Following the transfer, the ministry will then completely dissolve the ailing insurer.
Prior to holding the restructured policies, the new company would need a state capital injection to balance out its liabilities and assets as it can no longer rely on Jiwasraya due to its negative equity, which reached Rp 35.9 trillion (US$2.5 billion) as of May 31.
“With a negative figure that big, it’s impossible for the ministry to create a new company without a state capital injection,” Tiko said as quoted by Kontan.
The amount of state capital will depend on the result of negotiations between policyholders and the House Commission VI on SOEs, trade and industry and Commission XI on financial affairs.
