JAKARTA (TheInsiderStories) – Insurance and underwriting firm, Indonesia Financial Group (IFG), to releases the domestic bond worth of Rp10 trillion (US$709.22 million) to restructure PT Asuransi Jiwasraya obligations. The corporate action are part of the bridging fund before the government inject the capital worth of Rp22 trillion in 2022 to insurance firm.
This was conveyed by deputy minister for state own enterprises (SOEs), Kartika Wirjoatmodjo, in a working meeting with parliament on Monday (30/11). He said, the capital injection will be given in two stages, around Rp12 trillion in 2021 and Rp10 trillion in 2022. Later, the bonds will be absorbed by state lender, PT Taspen, as an investor.
To run the planned, the ministry has established PT IFG Life under the former PT Bahana Pembinaan Usaha Indonesia (BPUI). The scheme has been taken to save Jiwasraya from corruption scandals and investment abuse. The Supreme Audit Agency has calculated the potential state losses from the bribery case reached Rp16.8 trillion.
The new subsidiary will have three business lines such as life and health, pension fund, and the migration of Jiwasraya policies which have been restructured to the company. With a consolidated asset of Rp72.5 trillion and new equity Rp36.7 trillion, IFG will managed PT Asuransi Kredit Indonesia (Askrindo), PT Jamina Kredit Indonesia, PT Jasa Raharja, PT Asuransi Jasa Indonesia, PT Bahana Sekuritas, PT Bahana TCW Investment Management, PT Bahana Artha Ventura, PT Grahaniaga Tata Utama, and PT Bahana Kapital Investa.
Wirjoatmodjo, stated the management of Jiwasraya would begin the restructuring starting November and is expected to be completed in March 2021. He explained, until July 2020, the negative equity values of Jiwasraya recorded Rp37 trillion.
Beside set up the new insurance firm, the company also intended to launch financial reinsurance in this quarter, joined with international reinsurance companies. Now, IFG is still waiting for a business permit from the regulator.
The nsurance firm was built from a very long history, starting from Nederlandsch Indiesche Levensverzekering en Liffrente Maatschappij van 1859 on Dec. 31, 1859. The first life insurance company in Indonesia (the Dutch East Indies at that time). On Dec. 17, 1960 the company was nationalized based on Government Regulation Number 23 of 1958 by changing its name to PT Djiwa Sejahtera Insurance Company.
Based on Government Regulation Number 214 of 1961, nine life insurance companies owned by the Netherlands were merged into the state insurance firm PT Djiwa Eka Sedahteraa (Djiwasraya). Then, based on Government Regulation Number 33 of 1972, Djiwasraya changed its status to become a PT Jiwasraya Insurance. And, on August 21, 1984 the company became Asuransi Jiwasraya.
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