TEMPO.CO, Jakarta -State-owned Enterprises (SOE) Ministry’s special staffer Arya Sinulingga announced that state-insurer PT Jiwasraya would partially fulfill its obligation to policyholders in March. He said it was sourced from investment funds to Jiwasraya’s subsidiary, PT Jiwasraya Putra.
“The funds will be collected by the second month [of 2020]. It will hopefully be distributed in March. But not entirely,” said Sinulingga in Jakarta on Sunday, January 19.
According to him, the first phase will see Rp2 trillion fulfilled to policyholders, especially “small customers,” which would be sourced from the investments into Jiwasraya Putra that were expected to reach Rp3 trillion in 2020’s first quarter.
During the same time, he said, the SOE Ministry would establish an insurance holding company to attract even more funds that were expected to reach Rp2 trillion. “There is a process to it, which isn’t easy. We are working extremely hard on this,” he said.
As previous reports on the matter suggest, Jiwasraya is on the brink of a default caused by a series of investment mistakes in high-risk investments, which eventually led the state-insurer to lose up to Rp13 trillion.
Apart from a plethora of investment woes, one of many notable mistakes was when Jiwasraya management invested five percent of its clients’ funds to good-performing companies but invested 95 percent into bad-performing investments.