Government’s Answer for Jiwasraya Fiasco: Insurance Holding

The State-Owned Enterprises Ministry is formulating a government regulation (PP) on state-owned insurance and reinsurance holding and expectedly coming into effect at the end of this month. PT Bahana Pembinaan Usaha Indonesia will be the parent company, with PT Asuransi Jasa Indonesia (Jasindo), Perum Jaminan Kredit Indonesia (Jamkrindo), PT Asuransi Kredit Indonesia (Askrindo), and PT Jasa Raharja as the subsidiaries.

Meanwhile, the government cannot include PT Asuransi Jiwasraya in the holding since the insurance company is still in default. However, the government is optimistic that the holding can help save the state-owned insurer. The deputy of State-Owned Minister, Kartika Wirjoatmodjo, ensured that the claim payments from Jiwasraya’s policyholders would come from the state-owned insurance and reinsurance holding. However, the government must obtain a clearance from the House of Representatives first before executing it. Hopefully, Jiwasraya can start paying the traditional policyholder’s claims in March.