The DPR's Solution To The Problem Of Jiwasraya Choking

Insurance Illustration. (Photo: Pixabay)

JAKARTA - Commission VI of the House of Representatives (DPR) RI recommended the formation of a working committee (panja) or a special committee (special committee) to solve the problems of PT Asuransi Jiwasraya (Persero). Currently Jiwasraya is indeed experiencing problems, one of which is related to not being able to pay claims due at the end of 2019 which are valued at IDR12.4 trillion because currently Jiwasraya is still experiencing liquidity pressure and conditions have not improved.

This was the conclusion at the DPR Commission VI hearing (RDP) with Jiwasraya Managing Director Hexana Tri Sasongko, at the Nusantara I DPR Building, Jakarta, Monday 16 December.

"Commission VI recommended to form a committee or special committee to solve the Jiwasraya problem," said Deputy Chairman of Commission VI DPR Aria Bima.

Previously, the proposal for the formation of a special committee or panja was made by several members of the House of Representatives Commission VI such as Rieke Diah Pitaloka from the PDI-P faction and Herman Khaeron from the Democratic Party faction.

"We have to form a panja because it is impossible not to form a panja and it can be closed, but the deepening can be more detailed," said Rieke.

Rieke said that the formation of the special committee not only aims to solve the Jiwasraya Insurance problem but also automatically saves customers who are victims.

"If the customer is not saved, then that is not saving Jiwasraya's name. How to save the rights of customers and the rights of the state ?, "he said.

Meanwhile, Herman Khaeron said that the formation of the committee was very important because this case had to be resolved together. "I agree to form a panja. If there is a political decision, let's decide together because this was wrong from the start," he said.

Hexana Tri Sasongko said the funds needed to save the state-owned company amounted to Rp32.89 trillion. He also apologized to customers for not being able to provide an exact date when claim payments could be made.

In addition, Commission VI of the House of Representatives also suggested that the settlement of the Jiwasraya problem through legal channels should still be carried out starting by blocking the Directors of PT Asuransi Jiwasraya for the 2013-2018 period until the case was clarified. Then, ask Jiwasraya Insurance to make a strategic plan related to solving this problem.

The issue of Jiwasyara's liquidity shortage began to emerge from customer reports in October 2018, in which the state-owned insurance company was forced to postpone payment of policy obligations that were due. Payment of the policy that is due is related to the bancassurance product, with a value of IDR 802 billion.

Special Staff of the Minister of BUMN for Public Communication, Arya Sinulingga, said that one of the causes of Jiwasraya's financial collapse was the result of the wrong investment placement. Jiwasraya invests part of its managed funds in "fried" stocks to gain cash.

Fried stock is a term for stocks whose prices go up and down in a short time and are triggered by issues, not based on the company's fundamental performance. Thanks to the fast ups and downs of a rollercoaster, fried stocks are able to bring in crispy profits in no time. Conversely, the losses incurred can be multiplied if you misread the direction of the market.

For this reason, the Ministry of BUMN has brought this matter to the Attorney General's Office to examine the investment policies chosen by Jiwasraya's management. The Ministry of BUMN also assesses that there is a product that offers higher benefits compared to other products in this insurance.

The amount of fresh funds to cover Jiwasraya's needs is said to have reached Rp32.89 trillion. The request for bailout funds arose when the directors of PT Asuransi Jiwasraya (Persero) met with Commission XI on November 7, 2019. In the documents given by Jiwasraya to Commission XI, the need for fresh funds is to fulfill two things, namely the company needs fresh funds of IDR 16.13 trillion in order to increase the company's liquidity until next year.

Then, Jiwasraya also 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% of the risk-based minimum capital (MMBR). Currently, Jiwasraya's capital adequacy ratio is at a poor level, namely minus 805%.

Based on the minutes of the hearing, it was revealed that Jiwasraya's balance sheet as of the third quarter of 2019 had collapsed. Total assets were only Rp. 25.68 trillion, while total liabilities reached Rp. 49.60 trillion. Jiwasraya's equity was minus IDR 23.92 trillion. In addition, there is a potential for impairment of assets worth IDR 6.21 trillion.

From the RDP copy of Commission XI DPR, it is stated that there are four alternatives to save Jiwasraya. First, look for strategic partners who can generate IDR 5 trillion in funds. Second, an insurance holding amounting to IDR 7 trillion. Third, the reinsurance financial scheme worth IDR 1 trillion. Fourth, another source of funds from shareholders of Rp. 19.89 trillion.