OJK Revokes PT Asuransi Purna Artanguraha's Business License

Logo of the Financial Services Authority (OJK) and its activities. Antara/Ist

JAKARTA - The Financial Services Authority (OJK) revoked the business license of PT Asuransi Purna Artanugraha (PT Aspan) because the company could not meet the solvency ratio (risk based capital), equity and investment adequacy ratio according to applicable regulations.

Chief Executive of Insurance Supervisory, Guarantee and OJK Pension Fund Ogi Prastomiyono said PT Aspan was unable to close the difference in obligations with assets, through capital deposits by controlling shareholders or inviting investors.

"The revocation of the business license of PT Asuransi Purna Artanugraha is carried out in the context of implementing the provisions of laws and regulations consistently and firmly to create a healthy and reliable insurance industry, as well as protecting the interests of insurance policyholders," Ogi said as quoted by ANTARA, Saturday, December 2

With the revocation of the business license, the company is obliged to stop its business activities and within a maximum period of 30 days it is mandatory to hold a General Meeting of Shareholders (GMS) for the disbandment of legal entities and the formation of a liquidation team.

Since the revocation of business licenses, shareholders; directors; board of commissioners; and employees of PT Aspan are prohibited from diverting, guaranteeing, guaranteeing, or using wealth, or taking other actions that can reduce assets or reduce the value of the company's assets.

Meanwhile, policyholders can still contact the company's management in the context of consumer services until the liquidation team is formed. The liquidation team is then tasked with cleaning up assets and completing obligations, including obligations to policyholders.

Before the decision to revoke the business license, the OJK had imposed a Sanction on Restrictions on Business Activities (SPKU) because PT Aspan was unable to meet the minimum provisions of the solvency achievement ratio, equity and investment adequacy ratio.

OJK has provided sufficient time for PT Aspan to submit plans for action and/or plans for capital improvement. The company's directors and shareholders have several times submitted plans for action and plans for capital improvement.

However, the OJK could not approve the planned action and capital improvement plan because it was considered unable to overcome the fundamental problems of the company engaged in general insurance.

Regarding the management of PT Aspan, OJK has also carried out supervision which finds indications of irregularities in several aspects of management that will be explored further.

OJK has also complied with the requests of several policyholders to facilitate meetings with PT Aspan regarding the settlement of obligations to policyholders.

The supervisory measures carried out by the OJK, including the revocation of PT Aspan's business license, were carried out in order to protect the interests of policyholders and the community.