Indonesia – criminal charges against former ins. Executives
Saturday, 12 21 2019, Category: Insurance and Reinsurance, Country: Asia
Finance Minister Sri Mulyani Indrawati says the government would not protect former executives of a state-owned insurance company, Asuransi Jiwasraya, who were involved in the company's liquidity problem and is considering filing criminal charges.
"If there were any criminal activities [in Jiwasraya's operations] we will ask law enforcers to handle the case in accordance with the law," Sri Mulyani said after a meeting with House Commission XI in Jakarta on Monday, adding that the government and the House had agreed to "work together to solve the issue".
"The government and the House will [work] together to not protect those committing corporate crimes and also to provide certainty to investors," Sri Mulyani told reporters.
Sri Mulyani said that the government would involve the National Police, the Attorney General's Office and the Corruption Eradication Commission to restore public trust in Jiwasraya.
Jiwasraya failed to pay matured policies worth Rp 802 billion (US$54.14 million) that were marketed through various banks in the form of bancassurance, after the life insurer’s investments collapsed. The policies should have been paid in October 2018.
The company, which has been under close scrutiny by the Financial Services Authority, needed a Rp 32.9 trillion ($2.3 billion) capital injection to boost its risk-based capital ratio to the minimum requirement of 120 percent, Reuters reported, quoting company documents.
The government has previously announced it does not intend to bail out Jiwasraya, which booked losses of Rp 15.89 trillion in 2018 and Rp 13.74 trillion during the first nine months of 2019.
Source: The Jakarta Post