JAKARTA - Economic observer from the Institute for Development of Economics and Finance (INDEF) Bhima Yudhistira asked the government to immediately complete the restructuring of the Jiwasraya Insurance customer policy so as not to cause a crisis of public confidence in the insurance world in Indonesia.
"Certainty for the completion of policy restructuring is the most awaited by customers, especially in the midst of a pandemic, customers really need money," said Bhima as quoted by Antara, Monday, September 14.
According to him, the Jiwasraya issue is in the public spotlight so that it needs to be resolved quickly and precisely in order to raise public trust.
"The number of people who have insurance is still very small compared to the total population of Indonesia. With the Jiwasraya problem not resolved, it will affect the community, especially those who will enter insurance," he said.
Currently, there are millennial groups whose number reaches 90 million people who are potential targets for insurance services. Indonesia is also a country with a high level of risk, so insurance is really needed, because of the conditions that occur in Jiwasraya and other insurers.
"Seeing the case of Jiwasraya insurance default and other default insurance, the potential target could be lost because they are traumatized to buy insurance," said Bhima.
Regarding the customer policy restructuring option, he explained it could be done by selling the assets confiscated by the prosecutor's office, then using the money to pay for policies that were due or in arrears.
Apart from the sale of assets, restructuring can also be carried out through fees from other financial service companies, including state-owned companies forming new businesses and the proceeds from collection of fees that become "bail in" to Jiwasraya.
The government is known to have established a mechanism for restructuring the Jiwasraya customer policy by providing state equity participation (PMN) through a state-owned company, namely PT Bahana Pembanaan Usaha Indonesia (BPUI) as the holding company for insurance and underwriting holding.
BPUI then formed a new life insurance company, namely IFG Life, in which there was already a provision of state capital participation (PMN) to BPUI amounting to IDR 20 trillion which has been listed in the 2021 RAPBN Financial Note.
"There are three options to save Jiwasraya Insurance, namely bail out; restructuring, transfer, and bail in; and dissolved. Of the three options, it was decided to save and provide protection for policyholders through restructuring because it is far more beneficial, with the second option, namely restructuring. transfer, and bail in, "he said.
He explained, this life insurance will later try or save the restructured policyholders of Jiwasraya Insurance.
Jiwasraya restructured all policy holders of its products with the main agenda of reducing the previously promised interest by 13-14 percent to 6-7 percent. Customers who agree will be transferred to IFG Life which is under BPUI.
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