TEMPO.CO, Jakarta - Minister of State-Owned Enterprises, Erick Thohir, assured that insurance company Jiwasraya will begin paying in installments its obligation to pay customers' claims of around Rp16 trillion at the end of March 2020.

“Inshallah, the Jiwasraya team, according to the advice given from the ranks of the ministries, will try to start the initial payment at the end of March. But if it can be done sooner, we will try to do it,” said Erick during a meeting with the Working Committee (Panja) of the House of Representatives' (DPR) Commission VI at the Parliament building in Senayan, Jakarta, Wednesday, January 29, 2020.

Aside from poor investment choices, Erick explained, Jiwasraya's problems occurred as its management had made an error in offering insurance products with much higher interest rates compared to market interest.

The SOE Minister went on to say that Jiwasraya is also experiencing a lack of solvability, where a value of Rp28 trillion is needed to meet the risk-based capital (RBC) requirement of 120 percent.

“The Ministry of State-Owned Enterprises is coordinating with the Ministry of Finance (Menkeu), Financial Services Authority (OJK), and other institutions in the saving [of Jiwasraya] in accordance with our discussion; there would be cashing out at the end of March,” stated Erick Thohir.

EKO WAHYUDI | DIO SUHENDA (Intern Translator)