Jakarta: President Joko ‘Jokowi' Widodo has ordered the rescue of customer funds for PT Asuransi Jiwasraya (Persero). The steps to save the default case are mandated by a number of ministers.
"The President's instruction to the Minister of BUMN (Erick Thohir) and Minister of Finance (Sri Mulyani) is to consider measurable steps to meet the rescue of customer funds," said a spokesman for President Fadjroel Rachman in Jakarta on Wednesday, January 15, 2020.
The government guarantees financial losses incurred by customers through the rescue scheme of insurance SOE holding and asset sales. Payment of customer funds is expected to begin this year.
"Towards the interests of the public which are associated with financial losses," he said.
Fadjroel stressed that law enforcement against the insurance case must be carried out indiscriminately. The President appreciates the Attorney General's decision to appoint five suspects.
"The law must be upheld as well as possible because the Republic of Indonesia is a state of law," he said.
Jiwasraya has fabricated financial statements since 2006 in order to obtain a permit to sell JS Saving Plan products. The state-owned insurance company places 95 percent of investment funds in fried foods.
Based on initial allegations, the total funds invested in the junk stock reached Rp5.7 trillion or 22.4 percent of Jiwasraya's total investment.
As many as 98 percent of investment funds in mutual funds or Rp14.9 trillion are also entrusted with management to investment manager companies with poor performance.
Jiwasraya bears the potential loss of the state at Rp13.7 trillion until August 2019. Jiwasraya needs funds of Rp32.89 trillion in order to reach a Risk Based Capital (RBC) ratio of at least 120 percent.
The Attorney General's Office finally named five suspects in a suspected corruption case at PT Asuransi Jiwasraya. The five are former President Director of PT Asuransi Jiwasraya Hendrisman Rahim, former Head of Investment and Finance Division of PT Jiwasraya Syahmirwan, former Finance Director of PT Asuransi Jiwasraya Hary Prasetyo, President Commissioner of PT Trada Alam Minera Tbk (TRAM) Heru Hidayat, and Commissioner of PT Hanson International Tbk Benny Tjokrosaputro.
They were charged with Article 2 paragraph (1) juncto Article 18 paragraph (1) letter b of Law Number 31 of 1999 concerning Eradication of Corruption Acts as amended by Law Number 20 of 2001 in conjunction with Article 55 paragraph (1) of the 1st KUHP and Article 3 of the Corruption Eradication Act in conjunction with Article 55 paragraph (1) of the 1st Penal Code.