OJK Revokes Wanaartha Life Business License, Assets Of Shareholders Will Beburied

Chief Executive of Non-Bank Financial Industry Supervisory (IKNB) Ogi Prastomiyono (Photo: Doc. OJK)

JAKARTA The Financial Services Authority (OJK) today announced the revocation of the business license of PT Asuransi Jiwa Adisarana Wanaartha (Wanaartha Life/PT WAL).

This firm stance was taken following Wanaartha unable to meet the solvency ratio (risk based capital) set by the OJK in accordance with applicable regulations.

Chief Executive of Non-Bank Financial Industry Supervisory (IKNB) Ogi Prastomiyono said, Wanaartha was also proven unable to cover the difference in obligations with assets, either through a capital deposit by the controlling shareholder or inviting investors.

The high difference between liabilities and assets is the accumulation of losses due to sales of Saving plan-type products. Wanaartha sells products with definite returns that the company's ability does not benefit from its investment management," he said on Monday, December 5.

Ogi explained that Wanaartha was also caught fabricating the financial statements submitted to the OJK or the publication financial statements did not match their actual conditions.

"Regarding these conditions above, OJK has carried out five surveillance measures (supervisory actions)," he said.

First, continued Ogi, ordered the termination of the marketing of Wanaartha's saving plan-type products in October 2018.

Second, giving the first to third warning sanctions because Wanaartha does not meet the minimum risk-based capital (RBC) limit, the investment adequacy ratio (RKI) and minimum equity (from August 4, 2020 to June 26, 2021).

Third, impose the first (PKU) business activity restriction (for some business activities) on October 27, 2021, and increase the imposition of the second PKU sanction for all business activities on August 30, 2022.

Fourth, revoke the Wanaartha business license (CIU) as of December 5, 2022 because until the second PKU deadline which falls on November 30, 2022 (at most three months), Wanaartha does not also fulfill its obligations.

"And the fifth is conducting an examination of indications of a crime committed by the management, controlling shareholder, and Wanaartha employees," he said.

Ogi ensured that OJK investigators had carried out an investigation into the alleged criminal act of Wanaartha and coordinated with the Criminal Investigation Unit of the Police, which further named seven suspects.

Furthermore, the authorities will order the shareholders to hold the GMS with the agenda of dissolving no later than 30 (twenty) days after the revocation of the business license.

Then, take other actions in the form of reassessing the main party of Wanaartha, administrative action against public accountants, public accounting firms, and actuaries, as well as handling money laundering.

Then, search of Wanaartha's assets and his personal assets, including conducting civil lawsuits for the benefit of consumers.

Polis holders can contact Wanaartha in the context of consumer services until the Liquidation Team is formed. Later, the liquidation team will carry out policy verification which is the basis for calculating the settlement of policyholder rights," concluded Ogi.