Dumoly F. Pardede: OJK Deputy Chief Commissioner II for Supervision of Non-Bank Financial Industry
Wholesale replacement of directors has stalled

THE restructuring of Asuransi Jiwa Bersama Bumiputera 1912 has yet to happen. In fact, the state of finances of this, the oldest insurance company in Indonesia, is very worrying. As of the end of last year, Bumiputera's assets were worth just Rp15 trillion, half of the company's liabilities of Rp30 trillion. That is why the Financial Services Authority [OJK] completely reworked the management of Asuransi Jiwa Bersama Bumiputera 1912 in the middle of last month. It then appointed a number of people as statutory managers. Their job: to source fresh capital to inject. "We must protect the fates of our 6.7 million policy-holders," the OJK Deputy Chief Supervisory Commissioner II for the Non-Bank Financial Industry, Dumoly F. Pardede, told Tempo Ayu Prima Sandi by telephone last week.

On what basis did the OJK say Bumiputera is unhealthy?

In the last five years, its claims have risen very significantly, while the income from premiums did not match that. In the end, over the past five years, the management sold off assets to cover claims. If they had waited until next year, its risk-based capital (a ratio for measuring financial health) could go awry. We had to take over Bumiputera through statutory means to source new investors.

December 27, 2016