Protracted Problems, OJK Finds Kresna Life Has Not Increased Capital

JAKARTA - Chief Executive of Insurance Supervision of the Financial Services Authority (OJK) Ogi Prastomiyono stated that PT Asuransi Jiwa Kresna Life has not yet fulfilled the commitment of restructuring efforts.

According to him, this is not in line with the Financial Restructuring Plan (RPK) which has been submitted to the OJK on December 30, 2022 and the improvement of the RPK on February 20, 2023 by increasing capital.

"The company's management error and the absence of a clear and sincere commitment from shareholders to make financial restructuring through additional capital have made the Kresna Life problem even more protracted," he said in a press release today, Thursday, June 15.

Ogi explained that Kresna Life did not make alternative efforts to increase capital deposits from Controlling Shareholders (PSP) or cooperate with strategic investors, but only submitted a scheme to convert obligations to policyholders into subordination loans or loan subordination (SOL).

"This conversion scheme also cannot help the liquidity of Kresna Life because there is no flow of incoming funds as additional capital," he said.

Ogi said, in this SOL conversion scheme, Kresna Life has also not submitted the documents resulting from the SOL conversion agreement from policyholders who have decided to agree and have been concreted.

OJK, he continued, has provided enough time for Kresna Life since January 2023 to inform the risks and consequences of the SOL conversion program in a transparent manner to policyholders and ask Kresna Life to place funds in an emergency account as a commitment to additional capital.

Ogi added, on June 5, 2023, the OJK had received 32 boxes containing document copies with details of 10 boxes of approval for the SOL conversion program and 22 boxes of copies of the SOL conversion agreement.

The document was delivered in an introductory letter from a party that is not the main party of Kresna Life as recorded in the database in the OJK.

"In the document, no copy of the SOL agreement that has been concreted according to the provisions," he said.

In addition, continued Ogi, in the 32 boxes of documents submitted there was also no evidence of placing funds in the crowd account.

It was stated that the authorities are currently also conducting direct verification of Kresna Life policyholders sampling in various cities to get an overview of the implementation of the SOL conversion in terms of policyholders as well as conveying more complete information on the provisions governing the SOL conversion.

"Regarding the determination of the President Director of Kresna Life as a suspect by the Criminal Investigation Unit of the National Police on cases of alleged embezzlement and/or criminal acts of insurance and money laundering, OJK respects all applicable legal processes," concluded Ogi.