JAKARTA (TheInsiderStories) – PT Asuransi Jiwasraya, a state-owned insurance firm has raised funds Rp400 billion (US$25 million) from bond sales to other parties, said deputy minister at state own enterprises (SOEs), Kartika Wirjoatmodjo. The initial payment for the customers is targeting starting Monday (03/30).
“The source of the funds comes from the sale of financial assets in the form of bonds,” he told local media on Thursday.
The company promised to pay off the obligation gradually, not later than the fourth quarter of 2020. The official data showed, Jiwasraya‘ claims reached Rp16.7 trillion as of Feb. 17.
The liquidity pressure is currently dominated by debt plan saving claims, which worth of Rp16.3 trillion, or around 97 percent of its total debt. There are 17,370 savings plan policy holders whose rights have not been fulfilled.
Beside, the insurer also has a liability around Rp51 trillion with total assets around Rp22 trillion with the majority being illiquid and of poor quality. As a result, the state-owned company’ equity became around Rp29 trillion and risk-based capital -1.31 percent.
The SOEs ministry together with Jiwasraya was prepared three options to solve the liability problems namely bail in, bail out, or liquidation. Wirjoatmodjo revealed, that various efforts to restore Jiwasraya were carried out by the government.
Currently, four SOEs joined with the company plans to set up an insurance company. The majority of PT Jiwasraya Putra shareholders own by its parent 64 percent. While, PT Bank Tabungan Negara Tbk (IDX: BBTN) will hold 20 percent of the new joint venture company, followed by PT Telekomunikasi Seluler around 13 percent and the other shares hold by PT Kereta Api Indonesia and PT Pegadaian.
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.
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.
Various efforts were made by the firm to delay the payment, from extending customer policy contracts (roll-over), issued medium-term notes Rp500 billion, and other ways. According to the CEO, Hexana Tri Sasongko, 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.
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