Financial Health Check, BPK Checks Insurance Management Performance And PMN

Accounting for illustration (Photo: Unsplash)

JAKARTA - The Supreme Audit Agency (BPK) conducted an examination of the performance of the management of insurance and State Equity Participation (PMN) along with the transfer of assets and obligations in 2022 until the first semester of 2024.

This entry meeting activity was carried out with nine State-Owned Enterprises (BUMN) engaged in insurance.

"This performance check will see comprehensively not only from the portfolio aspect of insurance SOE management, but also from the regulatory and authority to policies and supervision," said Member VII BPK/Head of State Financial Audit VII Slamet Edy Purnomo quoting Antara.

The inspection targets point to government policies at the Ministry of SOEs, Ministry of Finance, Financial Services Authority (OJK), and other relevant agencies. Then, BPK will look at corporate governance, including supervision from internal audits and business strategies between holding and subsidiaries as well as PMN management.

The main point of focus of examination is assessing the level of health, the ratio of claims, the adequacy of the insurance business capital, to the policy of determining premium rates and investment policies. His party will also see how procedures and risk management in the insurance business process are implemented, as well as tracing cases of default claims and subrogacy rights.

Slamet said that this examination was motivated by the huge potential of the insurance market in Indonesia, but could not be utilized optimally by local insurance actors.

So far, local insurance has only been included in a small portion of the insurance market scoop in Indonesia. This needs to be found in the problem," he said.

The results of the examination of the performance of insurance management and PMN are expected to provide input and alternatives to strengthen the performance and competitiveness of SOEs in the insurance sector so that they can compete and absorb market potential in a healthy manner.

The entry meeting activity ended with the submission of an examination task letter from Member VII BPK to the President Director of PT Bahana Pembinaan Usaha Indonesia (Persero) Hexana Tri Sasongko as a representative of the inspection entity which indicated that the inspection had begun.