Settle the Jiwasraya Case

KOMPAS/ERIKA KURNIAWAN

Victims of PT Asuransi Jiwasraya insurance products hold a meeting with members of Commission VI of the House of Representatives (DPR) in Jakarta on Wednesday (4/12/2019).

The massive losses of state-owned company PT Asuransi Jiwasraya demands a comprehensive overhaul of the insurance industry.

Jiwasraya\'s loss gained wide attention after Finance Minister Sri Mulyani Indrawati openly mentioned that the trillions of rupiah loss suffered by the insurance company was allegedly due to corporate crime. Investment governance is considered problematic, while management is seen as abusing authority (Kompas, 20/12/2019).

The Attorney General\'s Office prevented 10 people, two of whom were former president director of Jiwasraya from traveling abroad. So far, the state loss is estimated at Rp 13.7 trillion. Previously, president director of Jiwasraya, Hexana Tri Sasongko, said Jiwasraya was unable to pay a customer policy of Rp 12.4 trillion, which was due in December 2019.

Jiwasraya\'s problem deals with financial deficits and the inability to fulfill obligations to policyholders. This insurance company, as explained by Finance Minister Sri Mulyani, has experienced financial problems since 2008-2009. A number of efforts to restructure the company\'s finances have been carried out by the government. The solvency ratio had improved to 120 percent, meaning that the company\'s assets could pay all of their obligations.

In its development, investment governance is problematic. One of them is the fact that the yield of insurance products being offered is too high, while the collected capital is stored in engineered or non-prospective shares.

The former company finance director was once the chief expert to deputies in the Executive Office of the President.

Out of the 10 names banned by the Attorney General\'s Office, there are also the names of entrepreneurs who are in widespread circulation on social media who are suspected of being related to Jiwasraya\'s investment. The former company finance director was once the chief expert to deputies in the Executive Office of the President.

The case that entangles Jiwasraya cannot be underestimated. The company has 5.5 million customers, 474 of whom are South Korean citizens in Indonesia.

As a shareholder, the government is obliged to reveal completely and transparently how the insurance pioneer company in Indonesia experienced defaults and liquidity deficits. Allegations of mismanagement of investment and the possibility of abuse of authority by management must be revealed clearly as learning in the future and not become a wild rumor that is spreading everywhere.

Beyond criminal settlement if it is needed, customers demand their rights to be fulfilled immediately. They invest personal funds in insurance products to guarantee a more secure and prosperous life.

The settlement must be permanent and sustainable, not just a book-based restructuring. Therefore, improvement must be comprehensive, not only to Jiwasraya, but also to the insurance industry and be implemented immediately. This is in order to maintain public confidence in the country and the international community in the Indonesian financial industry.