Jiwasraya Case; Erick Thohir Reminds Jasa Raharja to Be Cautious



Laila Afifa

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  • TEMPO.CO, Jakarta - Minister of State-Owned Enterprises (SOEs), Erick Thohir, warned other state-owned insurance companies to be more careful in choosing their shares to invest in, hoping that Jiwasraya case would not be repeated.

    “He [Erick] reminded us that we need to be more careful or prudent on investment issues,” said Jasa Raharja President Director, Budi Raharjo, in Jakarta, on Wednesday, January 15, 2020.

    The minister, Budi went on, reminded the state-owned insurance companies to invest only in healthy shares, also known as blue chips. According to Budi, Jasa Raharja always follows regulations provided by the Financial Services Authority (OJK), and have, thus far, constantly considered how to be more prudent in their investments.

    Jasa Raharja is certain to always follow the directives of the commissioners. It also has an investment committee and the board of advisors that will act as a reference for Jasa Raharja's investments.

    "With this (Jiwasraya) incident, we at least have to increase our awareness on our incomes," said Budi.

    Jiwasraya had relied on a ‘high-risk high reward’ investment scheme, such as at the 22.4 percent share placement worth Rp 5.7 trillion of their financial assets, among others. From the total, 95 percent of funds were placed in shares that performed poorly.

    As a result, the state insurance company, up to August of 2019, bears a potential loss valued at Rp13.7 trillion to the nation’s finances.