This Is What The OJK Said About The Settlement Of The Land Of Bumiputera Claims Gradually Until 2027

Screenshot - Chief Executive of Insurance Supervisory, Guarantee, and OJK Pension Fund Ogi Prastomiyono attended an online press conference on the results of the OJK RDK in June 2024 on Monday (8/7/2024). (Doc. ANTARA)

JAKARTA - The Financial Services Authority (OJK) said that there had been a decrease in the value of the benefits of the outstanding number of AJB Bumiputera (AJBB) claims based on the revision of AJBB's Financial Restructuring Plan (RPK) and the plan for claims would be completed in stages until 2027.

"Every policyholder who has a claim should immediately contact AJBB for settlement of due claims which are planned to be completed in stages until 2027," said OJK's Chief Executive of Insurance, Guarantee and Retirement Fund Ogi Prastomiyono in a statement in Jakarta, quoted from ANTARA, Saturday, July 13.

According to Ogi, his party has also stated that it does not object to the revision of the RPK on July 1, which states that AJBB still chooses restructuring in the form of joint (mututal) business.

"In the revised RPK which has received a statement that does not object to the OJK, in the form of mutual restructuring (AJBB) it is carried out through fixed asset conversion to be more liquid and carry out several management efficiency," he said.

In addition to these two efforts, the revised document also contains two other main programs, namely the completion of outstanding claims to policyholders and the acquisition of insurance premiums.

"The recovery scheme will be monitored by the OJK and if the specified time limit is deemed unable to implement it, AJBB which has been given a long time to be healthy in the form of a mutual must determine other options regulated in the laws and regulations including the basic budget," said Ogi.

He said that another option is a plan to change legal entities from joint business or demutualization after making optimal efforts, perhaps in advance to nourish the company in the form of joint business according to statutory provisions.

One of the advantages of demutualization, he continued, is a restructuring effort that is not only based on the ability of existing policyholders as company owners, or the equivalent of shareholders, but also allows additional capital from other investors.

Regarding AJBB's shares, Ogi said that the number of placements of the company's investment in shares listed on the stock exchange is still in accordance with the provisions of OJK Regulation Number 1/POJK.05/2018 concerning Financial Health for Insurance Companies in the Form of Joint Business Legal Entities (POJK 1/2018).

Based on the company's financial statements as of May 31, the total investment placement in shares recorded on the stock exchange was IDR 92.58 billion, or 1.38 percent of the total investment of IDR 6.69 trillion.

"In Article 11 of POJK, it is regulated that the imposed Asset restriction is in the form of investment in the form of shares recorded on the stock exchange, for each issuer it is 10 percent higher than the total investment and a maximum of 40 percent of the total investment," said Ogi.