Staff Of Erick Thohir: Insurance Business Is Not For Profit!

Staff of the Minister of SOEs Arya Sinulingga (Photo: Doc. VOI)

JAKARTA - Special Staff to the Minister of State-Owned Enterprises (BUMN) Arya Sinulingga emphasized that the insurance business is not to make a profit, but as a protection. According to Arya, the purpose of making this profit has finally become a case in Jiwasraya.

"Insurance is protected, not profit-making. So we hope that with this, our insurance will be healthy, observing the experience of existing insurance failures," he said at the Ministry of SOEs, quoted Friday, August 23.

Arya said that people used to look for insurance for profit purposes. In fact, he said, if you want to get an investment benefit in the stock market or gold, it's not in insurance.

So people are looking for insurance for protection, not making a profit. That used to be people looking for insurance, looking for profit, that's what makes the Indonesian insurance industry unhealthy, investments are stocks, gold, bonds, or SUN or something, not insurance," he explained.

Furthermore, Arya said that the amount of fraud in the Jiwasraya case was not small, reaching around Rp. 50 trillion. The reason is because the handling of insurance that is carried out is not appropriate.

"So we are back again flashbacks, that because this insurance is handled incorrectly, it offers flowers that are not feasible, unusual, unusual returns, so there is a fraud like this," he said.

Arya said one of Jiwasraya's efforts to restore with restructuring, including the transfer of policies from Jiwasraya to IFG Life. According to him, the insurance business process will be carried out according to the provisions of IFG Life by not being profit-oriented.

"This is what we are now with this IFG Life, we, Mr. Erick, are indeed encouraging the restructuring of the insurance industry as well, to be returned to the actual insurance function. So that like IFG Life, he really focuses on his life," he explained.

Arya also said that the restructuring of the insurance business was also carried out by carrying out liquidation in Jiwasraya. Furthermore, the policy guarantee was carried out by IFG Life.

"We disband Jiwasraya, we replace it with IFG Life so that it returns to the real business," he said.