IFG Life Is Considered To Be The 'Savior' For The Settlement Of Jiwasraya's Default Case

Jiwasraya Building. (Photo: Antara)

JAKARTA - BUMN Observer Toto Pranoto appreciates the steps of the Government and the new management of PT Asuransi Jiwasraya (Persero), which already has a blueprint for the Jiwasraya settlement plan, including restructuring efforts that are currently underway because it can reduce the losses of policyholders and the government.

According to him, the formation of the Indonesia Financial Group (IFG) Life, which is a subsidiary of the BUMN insurance and guarantee holding company, is also a step in solving the problem at Jiwasraya.

"The new company can absorb all Jiwasraya customer policy contracts that agree with the transfer of product management to IFG Life," said Toto as quoted by Antara, Wednesday, November 11.

According to Toto, IFG will move as a new life insurance corporation, taking advantage of the captive market within the state company environment, and government institutions and other markets that are still very wide open.

"The government has budgeted nearly Rp20 trillion in funding support in the next 2 years for IFG Life's capital, both for the payment of ex-Jiwasraya's maturing policies and for IFG's future business capital needs," he said.

As is known, Jiwasraya's liability or liability position as of September 30, 2020 was at Rp. 54.5 trillion, with assets of Rp. 16 trillion. With this condition, Jiwasraya's equity is in a negative position or minus IDR 38.5 trillion.

Toto assessed the requirements for IFG Life to grow well, namely by the appointment of professional management with integrity and the ability to innovate new digital-based products that have become a world trend.

With the support of a captive customer base and synergy with many relevant SOEs, he added, the prospects for IFG Life will be quite good.

"Jiwasraya itself will eventually become a business entity that clears up the settlement of customer funds who do not agree with the option to be transferred to IFG Life. So, in the future, I suspect they will be tasked with handling administrative matters regarding the matter," he said.

Toto added that the sale of Jiwasraya's assets, namely Cilandak Town Square (Citos), to the BUMN Karya consortium as well as the holding of BUMN insurance and underwriting IFG, is one of Jiwasraya's efforts to increase liquidity by accelerating the divestment of several strategic assets.

The funds for the sale of Citos themselves are paid in stages. Phase 1 of IDR 1.4 trillion has been used by Jiwasraya to pay the roll over Saving Plan interest from October 2018 to September 2019. Stage 2 of IDR 700 billion has been used to pay claims due to retirees (annuities) since March 2020. While stage 3 of IDR 100 billion is new. will be paid in 2022

"Such steps in the short term can help Jiwasraya complete its obligations to customers," he said.