Jiwasraya's Default Settlement Through PMN Is Considered A High Risk

Illustration. (Photo: Asabri)

JAKARTA - The proposal from the member of Commission VI DPR RI, Marwan Ja'far regarding the State Capital Participation (PMN) scheme for the settlement of Jiwasraya's default is considered high risk. This is considered vulnerable to being politicized.

Institute for Development of Economics and Finance (INDEF) economist Bhima Yudhistira said this was a high-risk option because bailout funds were prone to being misused.

"As much as possible, do not involve APBN funds, because they are prone to being politicized and becoming a bully for politicians," Bhima told VOI, Monday, January 20.

According to Bhima, the most rational way to settle Jiwasraya's default is through business restructuring. "So far the restructuring scheme is more rational and the risk is small," said Bhima.

Previously, Jiwasraya's Managing Director, Hexana Tri Sasongko, revealed that there is a business restructuring scheme to settle Jiwasraya's defaults. The scheme is the establishment of a Jiwasraya subsidiary, namely Jiwasraya Putra.

"This subsidiary will later issue products to be sold, then these products will be distributed by four BUMNs," said Hexana some time ago.

The four BUMNs are PT Bank Tabungan Negara (Persero) Tbk, PT Pegadaian (Persero), PT Kereta Api Indonesia (Persero), and PT Telkomsel (a subsidiary of PT Telekomunikasi Indonesia Tbk). These four BUMNs also have shares in Jiwasraya Putra.

"So, where does Jiwasraya get the settlement to be able to pay? Jiwasraya controls approximately 65 percent of Jiwasraya Putra's shares. Of that 65 percent is divested to a strategic partner. The money will be used to pay obligations," said Hexana.

The proposal regarding the settlement through PMN was revealed by Marwan Ja'far today Monday 20 January. According to Marwan, the government, in this case the Ministry of Finance (Kemenkeu), proposed a PMN scheme to resolve the Jiwasraya case, because Marwan considered it safer and faster to cover Jiwasraya's needs.

"The rights of these customers must be the top priority. There is no way other than to immediately save Jiwasraya's finances through the PMN scheme, "said Marwan.

Jiwasraya is facing two problems, namely a drag in the company's liquidity to a deficit in capital adequacy based on the risk of the insurance company or risk base capital (RBC). Currently, the company is reportedly in need of fresh funds amounting to IDR 16.13 trillion in order to increase the company's liquidity until next year.

In addition, Jiwasraya needs fresh funds of up to IDR 32.89 trillion in order to increase the capital adequacy ratio according to the minimum standard, which is 120 percent of the risk-based minimum capital (MMBR). Currently, Jiwasraya's capital adequacy ratio is minus 805 percent.

According to Marwan, the B2B (business to business) settlement scheme as attempted so far cannot be said to have met a bright spot in order to save Jiwasraya.

Meanwhile, Jiwasraya as a BUMN, according to him, is quite important because it is directly related to many customers who are Indonesian people.

Regarding Jiwasraya's future prospects, which according to the Ministry of Finance is unclear, so that he does not dare to undertake the PMN scheme, Marwan is optimistic that after investigating the corruption case in the board of directors, the prospects for this state-owned insurance company will be clearer.

This is because, according to Marwan, the root of Jiwasraya's problem is in its poor management due to corruption by its board of directors. So, after the cleaning is successful, the prospects for Jiwasraya will improve because it will be carried out by the right people.

Previously, the Ministry of Finance's Director General of State Assets, Isa Rachmatawarta, said that his party had discussed the Jiwasraya issue with the Ministry of BUMN regarding the rescue scheme for the oldest insurance company.

However, Isa stated that he would not increase the capital of a BUMN, if the prospects were not clear. What is certain, said Isa, the rescuing of Jiwasraya will not be carried out with the PMN scheme.