TEMPO.CO, Jakarta - The State-Owned Enterprises (SOE) Ministry has readied a series of schemes to salvage beleaguered state insurer PT Asuransi Jiwasraya. One of the plausible schemes is to inject Rp1.5-2 trillion into the company as additional cash flow from an in-progress insurance holding company.

The ministry, the Finance Ministry and the Financial Services Authority (OJK) have discussed the planned fund injection, yet its implementation will require a House consent.

“But for the approval and the source of the cash, we must discuss these matters first with the Commission 6 and the Commission 11,” said SOE Deputy Minister Kartika Wirjoatmodjo at the Finance Ministry building in Central Jakarta, Friday, February 7, 2020.

Kartika said presently the establishment of the insurance holding company was in the stage of finalization of legal aspects at the Law and Human Rights Ministry. State-owned company PT Bahana Pembinaan Usaha Indonesia (BPUI) will be in charge of the holding company.

Other state insurers included in the holding company are Jasindo, Jasa Raharja and Askrindo—there is no plan yet to include Jiwasraya in the holding company, which will be tasked to save Jiwasraya policyholders.

Kartika also assured the disbursement of Jiwasraya policyholders’ funds would be done in stages, beginning March 2020. However, it cannot be confirmed yet whether the funds would come from Jiwasraya’s cash or the additional Rp1.5-2 trillion from the holding company.

Fajar Pebrianto | Galuh Kurnia Ramadhani (Intern Translator)