Home News Indonesia Overhauls ASABRI’s Directors Over Its US$757M Losses

Indonesia Overhauls ASABRI’s Directors Over Its US$757M Losses

Indonesian State-Owned Enterprises (SOEs) Ministry on Thursday (01/30) officially overhauls board of directors of PT ASABRI - Photo by Antara.

JAKARTA (TheInsiderStories) – Indonesian State-Owned Enterprises (SOEs) Ministry on Thursday (01/30) officially overhauls board of directors of PT ASABRI, social insurance and special pension payments for soldiers and national police, following it suffer the losses of Rp10.6 trillion (US$757.15 million) from plunging stock investments.

The losses come from the debt of president director of PT Hanson International Tbk (IDX: MYRX) Benny Tjokrosaputro and president commissioner of PT Trada Alam Mineral Tbk (IDX: TRAM) Heru Hidayat for the share purchase but not fulfill their obligation until today. Hidayat has responsibilities amounted to Rp5.8 trillion and Tjokrosaputra worth of Rp5.1 trillion to ASABRI. The businessmen have also made a loss to a state-owned company, PT Asuransi Jiwasraya.

The failure has made the insurance firm’ investment returns minus Rp4.84 trillion in 2019, according to the CEO of ASABRI, Sonny Widjaja at the hearing with parliament on Monday.

In Thursday’ overhaul, the ministry retained Widjaja as the president director and dismissed Herman Hidayat and Rony Hanityo Apriyanto from their positions as directors.

“In addition to overhauling the directors, the ministry also made changes to the nomenclature and the appointment of the ASABRI new directors,” Ferry Andrianto, the ministry’ spokesman, said in a written statement.

To fill these positions, SOEs Minister Erick Thohir appointed Eko Setiawan as HR and Legal Director, Helmi Imam Satriyono as Finance Director, and Jeffry Haryadi Manullang as Investment Director.

Lately, three insurances problem become public attention caused is estimating give a trillion rupiahs loss for the country. Beside ASABRI and Jiwasraya, there is also a problem in life insurance company, PT AJB Bumiputera 1912. They have similar problems in terms of investment.

Coordinating minister for politic, law, and security affairs, Machfud MD has said there were corruption allegations in ASABRI Rp10 trillion. While, the attorney general office predicted there is a potential corruption Rp13 trillion in Jiwasraya. Both cases involved Tjokrosaputro and Hidayat.

The law enforcer has set Tjokrosaputra became a suspect in the bribery case of a stock transaction in Jiwasraya. Beside him, the attorney general’ office also arrested Hidayat, former finance director of Jiwasraya, Hary Prasetyo, and examined 34 witnesses, including Indonesian Stock Exchange’ officials, former director of PT OSO Investment Management, Lies Lilia Jamin, and former head of investment division of Jiwasraya, Syahmirwan.

Jiwasraya experienced a failure to pay for the JS Saving Plan insurance product which will mature in the fourth quarter of 2019 with a value of Rp12.4 trillion and this year have the potential lift to Rp16 trillion.

The JS Saving Plan is an investment-wrapped life insurance product offered through banks also known bancassurance. The product have a guaranteed return of 9 – 13 percent during 2013 – 2018 with a disbursement period every year.

While, Bumiputera, is faced with the obligation to pay customer claims in 2019 and 2020 amounting to Rp9.6 trillion. The company’ president director, Dirman Pardosi, targeting the insurance’ liquidity problems to improve within four years’ time.

To pay the claims, Bumiputera plans to sell its assets with a value of up to Rp2 trillion. It’s planned that the disposal of these assets will be carried out with a sell-off scheme and partly with an operation cooperation scheme with other parties.

US$1: Rp14,000

Written by Lexy Nantu, Email: lexy@theinsiderstories.com