JAKARTA - PT Asuransi Jiwasraya (Persero) recently stumbled on a default case that caused considerable state losses. In order to save Jiwasraya's customer policies using a restructuring scheme, this is decided by the DPR.
The Jiwasraya case is the tip of the iceberg that has just emerged. If traced, the Jiwasraya problem has occurred since 2018. Initially, this case stems from the removal of Jiwasraya's Managing Director Hendrisman Rahim and Jiwasraya's Finance Director Hary Prasetyo from their positions.
Then in May 2018, shareholders appointed Asmawi Syam as the main director of Jiwasraya. Under his leadership, the new directors reported irregularities in the financial statements to the Ministry of BUMN.
The indication of irregularities is correct, because the audit results of the Public Accounting Firm (KAP) PricewaterhouseCoopers (PwC) on the 2017 financial statements corrected the interim financial report from a profit of IDR 2.4 trillion to only IDR 428 billion.
SOE Minister Rini Soemarno gathered directors to explore the company's potential for default. He also asked the BPK and BPKP to conduct an investigative audit of Jiwasraya.
The problem of Jiwasraya's liquidity pressure began to hit the public in October to November 2018. The company announced that it could not pay the policy claims due to JS Saving Plan customers amounting to Rp802 billion.
In November, shareholders appointed Hexana Tri Sasongko as President Director replacing Asmawi Syam. Hexana said Jiwasraya needed funds of IDR 32.89 trillion to meet the solvency ratio (RBC) of 120 percent.
Not only that, the company's assets were recorded at only Rp. 23.26 trillion, while its liabilities reached Rp. 50.5 trillion. As a result, Jiwasraya's equity was negative amounting to Rp27.24 trillion. Meanwhile, liabilities for problematic JS Saving Plan products were recorded at IDR 15.75 trillion.
November 2019, the BUMN Ministry under the leadership of Erick Thohir admitted to reporting indications of fraud at Jiwasraya to the Attorney General's Office (AGO). This was done after the government looked in detail at the financial statements of companies that were considered not transparent.
January 2020, the Supreme Audit Agency (BPK) announced an official statement regarding the Jiwasraya scandal. One of the reasons is that the company's profit since 2006 has been called false because of its accounting engineering (window dressing).
The results of the BPK examination will become the basis for the AGO to make decisions against those responsible for Jiwasraya's condition.
October 2020, President Director of PT Asuransi Jiwasraya (Persero) Hexana Tri Sasongko estimated that the company suffered a loss of Rp37.4 trillion. This value includes the company's total losses.
The loss value referred to as Hexana is twice as large as the total loss reported by the Supreme Audit Agency or BPK in an investigative audit. Some time ago, the BPK recorded a loss experienced by Jiwasraya of Rp. 16.8 trillion.
On October 31st, Jiwasraya's liability value was Rp.53.9 trillion, while the asset value tended to continue to fall at Rp.15.4 trillion, so that Jiwasraya's equity was negative at Rp.38.5 trillion.
Jiwasraya Rescue Option through RestructuringTo save PT Asuransi Jiwasraya (Persero) 's customer policies, the DPR RI has decided to use a restructuring scheme. The decision came from the results of the Jiwasraya Working Committee (Panja) which had studied the issues surrounding the state-owned company.
Chairman of Panja Jiwasraya Commission VI of the DPR RI, Aria Bima explained, this restructuring option is the best option among the existing options to save PT Asuransi Jiwasraya (Persero) 's customer policies.
"We choose this restructuring with Bail In and we agree on it because this is the best scheme of several available options," he said, reporting the results of Panja Jiwasraya at the DPR Commission VI meeting in Jakarta, Monday evening, November 30.
Aria did not deny that there are other options available to rescue customer policies. Among them are Bail Out and Liquidation options. However, the two options are not the right choice and will result in huge losses, especially for Jiwasraya customers.
According to Aria, the Bail Out option cannot be implemented because it has no legal basis. Meanwhile, the liquidation option is expected to create uncertainty for the return of customer funds, even as a bad impact, the liquidation option will have a negative impact on the social, political and national economic aspects.
With the results of the approval of the House of Representatives Commission VI, Aria Bima urged the government to immediately accelerate the rescue of PT Asuransi Jiwasraya (Persero) 's customer policies using the agreed scheme. The acceleration is also to prevent Jiwasraya's equity deficit.
Aria Bima explained that fresh funds were needed to restructure PT Asuransi Jiwasraya (Persero) 's customer policies. According to the deputy chairman of Commission VI of the House of Representatives (DPR), this option was the best compared to letting the company go bankrupt.
Meanwhile, the government allocates Rp20 trillion of PMN for PT Bahana Indonesia Business Development (Persero) or BPUI in 2021. However, these funds are deemed insufficient to support IFG Life.
"So, BPUI will make a deposit to IFG Life of Rp. 26.7 trillion," he said.
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According to him, other coffers are needed to support IFG Life funding. Observing the development of budget availability and the results of the 2021 Funding Coordination Meeting, will be pursued through PMN of at least IDR 12 trillion.
Aria said debt securities with an issuance value of up to IDR 10 trillion could be offered. Furthermore, PT Taspen (Persero) is said to be a buyer of mandatory convertible bonds.
The debt securities issuance is targeted to take place in March to July 2021. The repayment of the debt securities will be included in the 2022 draft state revenue and expenditure budget (RAPBN) along with a state investment (PMN) allocation of IDR 10 trillion for BPUI.
In relation to the policy restructuring socialization process, since August 2020 corporate customers have been involved, especially state-owned companies. As of November 2020, the restructuring cash value has reached Rp1.03 trillion, consisting of 282 corporate customers.
Furthermore, outreach to all customers will be carried out in December 2020. Aria also emphasized that if the restructuring has been carried out, Jiwasraya will continue to operate.
Meanwhile, Special Staff of the Vice President for Infrastructure and Investment Sukriansyah S. Latief said that the Jiwasraya policy restructuring plan to IFG Life has been pocketed. The portfolio transfer and adjustment of the policy repayment value are targeted to be completed in the next six months.
"It is hoped that this restructuring process can be completed in May 2021," he said in an official statement.
Sukriansyah also said that Jiwasraya can manage customers' expectations well by preparing various mitigation measures. The company must minimize the potential for customer dissatisfaction that could lead to a lawsuit.
Jiwasraya Ensures Replace 100 Percent of Customer MoneyJiwasraya ensures that it will pay all debts claimed by customers, both traditional policies and saving plans. However, there are a number of provisions and offers that the company provides to policyholders.
Jiwasraya President Director Hexana Tri Sasongko said that his party together with the Ministry of State-Owned Enterprises (BUMN) and the DPR have agreed to offer four claim payment schemes to policyholders. The main scheme offered is full payment through policy restructuring to IFG Life.
"The point is we pay 100 percent but the period of installments is 15 years. Or if you want it to be faster, there must be an adjustment in the cash value first," he said.
Customer Refund SchemeJiwasraya offers the first scheme, which is to pay all claims with a recorded cash value until December 31, 2020. The stipulated figure will be paid in installments in the long term, with an indication of 15 years without interest because the previous interest has been calculated in cash value.
The second scheme is that customers can apply for an earlier payment, but there is an adjustment in the cash value or hair cut due to limited IFG Life funds. After the value adjustment, according to Hexana, the payment will be paid in installments for five years.
Then, the third scheme is if there is a request for cash payments from customers. According to Hexana, his party will calculate a certain percentage so that the value that can be paid up front is obtained, then there is a haircut and the payment is in installments for five years.
Meanwhile, the fourth scheme is if the customer refuses to restructure the policy to IFG Life. Jiwasraya will manage the policy and pay for it with the existing asset capacity.
"Only in this way will the funds from the government be sufficient to solve the problem, but at the same time build a healthy, vibrant IFG Life. So these two goals must be achieved," said Hexana.
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