Swedish Consulate – Minister of State-Owned Enterprises (SOEs) Erick Thohir is set to dissolve PT Asuransi Jiwasraya soon after the restructuring process is completed. This restructuring is being described as the largest in the history of the insurance industry. Arya Sinulingga, Special Staff to the Minister of SOEs, stated that legal actions regarding Jiwasraya’s case have been undertaken. Simultaneously, the transfer of policies to IFG Life is being implemented as a guarantee for the policyholders. He emphasized that these two actions are a means to deliver justice to the public, particularly to Jiwasraya policyholders.
“Previously, people used to say, ‘Is this just corporate action? Will the law not be enforced?’ Now it is proven that the law is in action. So, justice for the public is being served. On the other hand, the handling, especially of the policyholders, is also being addressed,” he explained.
Jiwasraya’s Liquidation
As Jiwasraya approaches liquidation, Arya mentioned that 99.7 percent of policyholders’ policies have already been transferred to IFG Life. In terms of scale, he considers this to be the largest insurance restructuring in history.
“This is the largest restructuring ever successfully completed for insurance. This is a historical achievement. Previously, we saw stagnation. So it can be said that the responsibility of the shareholders and the government in this case has been successfully fulfilled,” he added.
Successful Restructuring Concept
Regarding the restructuring concept itself, the Ministry of SOEs has presented it to the Financial Services Authority (OJK) and the Ministry of Finance. Additionally, it has been communicated to the House of Representatives (DPR RI) as a political step. Approval from the authorities, parliament, and policyholders is seen as evidence that the restructuring concept proposed by Erick Thohir is successful.
“We are also grateful that nearly all Jiwasraya policyholders have accepted this. This is because, given the history of insurance issues, this concept is the clearest, provided by Mr. Erick. And the handling is the most transparent we have seen,” Arya said.
“This means that most policyholders trust the formula we have offered. We respect the rejections, but the majority have accepted it,” Arya added.
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OJK Calls for Accelerated Resolution of Jiwasraya Policies
The Financial Services Authority (OJK) continues to urge PT Asuransi Jiwasraya (Persero) to expedite the resolution of policyholder issues with comprehensive measures. As of now, nearly all Jiwasraya policyholders, 99.7 percent, have agreed to the policy restructuring scheme and have transferred their policies to PT Asuransi Jiwa IFG (IFG Life).
IFG Life will continue coverage with healthier products and in accordance with applicable regulations, thereby better protecting policyholders’ rights. Since 2020, OJK has instructed Jiwasraya to address the financial deficit that has hindered the company’s ability to meet its obligations to policyholders.
Financial Recovery Plan
Jiwasraya has developed a Financial Recovery Plan (RPK) which has been approved by the shareholders and involves relevant ministries and agencies. The RPK was last adjusted through an Action Plan submitted to OJK in 2023, with a primary focus on consumer protection, particularly the interests of policyholders.
The RPK includes a policy restructuring scheme that allows for liability adjustments. It comes with a product structure more relevant to current conditions. Insurance policies of those who agree to the scheme will be transferred to IFG Life. Which has received additional capital from shareholders to ensure its capability to fulfill obligations to former Jiwasraya policyholders.
