PT Bank Tabungan Negara Tbk (IDX: BBTN) and PT Taspen Life, a subsidiary of pension fund PT Taspen, had acquired PT Jiwasraya Putra - Photo by the Company

JAKARTA (TheInsiderStories) – The advisor of state-owned insurance firm, PT Asuransi Jiwasraya, PT Mandiri Sekuritas announced the state lender, PT Bank Tabungan Negara Tbk (IDX: BBTN) and PT Taspen Life, a subsidiary of pension fund PT Taspen, had acquired PT Jiwasraya Putra. 64 percent of the subsidiary’ shares own by its parent.

When the media try to get confirmation from state own enterprises’ (SOE) deputy minister Kartika Wirjoatmodjo, he deny to comment. As reported, Jiwasraya’ inability to pay policyholder claims caused a negative equity position.

According to CEO of Asuransi Jiwasraya, Hexana Tri Sasongko at the tele conference in March, there had been a winner of its unit shares sale. Earlier, minister of SOE, Erick Thohir said, he had prepared a formula joined with the ministry of finance and the Financial Services Authority to save the company.

He explained three specific steps to deal with the problem, one of which was to complete customer policy payments reaching Rp16 trillion (US$1.14 billion) through Jiwasraya Putra. Then, looking for a strategic partner to raises fresh fund Rp1 trillion to Rp3 trillion. And, set up a holding insurance to get a budget support.

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, the insurer 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 roll-over, issued medium-term notes Rp500 billion, and other ways.

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 Asuransi Jiwasraya.

US$1: Rp14,100

Written by Staff Editor, Email: theinsiderstories@gmail.com