Four Indonesian state-owned companies (SOEs) joined with PT Jiwasraya, set up an insurance company, said the government official today (09/30) - Photo by Jiwasraya

JAKARTA (TheInsiderStories) – Four Indonesian state-owned companies (SOEs) joined with PT Jiwasraya, set up an insurance company, said the government official today (09/30). The majority of PT Jiwasraya Putra shareholders own by its parent 64 percent.

While, the property lender PT Bank Tabungan Negara Tbk (IDX: BBTN) will hold 20 percent of the new joint venture company, followed by PT Telekomunikasi Seluler 13 percent. While the other shares hold by PT Kereta Api Indonesia and PT Pegadaian.

According to Gatot Trihargo, deputy at the SOEs ministry, the four SOEs not only acting as shareholders but also acted as distributors of the the Jiwasraya Putra‘ product. “

The insurance company formed by the SOEs, has get permit from the Financial Service Agency on Sept. 13. Jiwasraya’ CEO Hexana Tri Sasongko hoped that the presence of the new unit could escalate the cash flow of the company in the form of dividend.

Beside set up Jiwasraya Putra, the insurance firm also intended to launch Financial Reinsurance in October or November, joined with international reinsurance companies. For now, Jiwasraya is still waiting for a business permit from the regulator.

As known, Jiwasraya is facing liquidity pressure and unable to pay the obligations to their customers. The company promised to pay off the obligation gradually, not later than the fourth quarter of 2020.

Various efforts were made by the firm to delay the payment, from extending customer policy contracts (roll-over), issued medium-term notes Rp500 billion (US$35.46 million), and other ways. He said, Jiwasraya will pay its obligations to customers of Standard Chartered Bank and PT Bank KEB Hana Indonesia in three stages.

At the first phase, the company pay the customers who have premiums up to Rp500 million. Then, second phase, for customers who have premiums up to Rp750 million and third phase with premiums up to Rp1 billion.

Jiwasraya 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 PT Asuransi Jiwasraya.

US$1: Rp14,100

Reported by Lexy Nantu, Edited by Linda Silaen, Email: lexy@theinsiderstories.com