OJK Gives Kresna Life The Opinion Of A Plan For A Financial Restructuring In The Next One Month

Capture the screenshot of the Chief Executive of Non Bank Financial Industry Supervision (IKNB) OJK Ogi Prastomiyono. (Theresia Agatha/VOI)

The Financial Services Authority (OJK) ensures that PT Asuransi Jiwa Kresna (Kresna Life) is included in one of the lists of companies specifically supervised. Therefore, OJK still provides the last opportunity to PT Asuransi Jiwa Kresna (Kresna Life) to propose a comprehensive, structured and measurable Financial Restructuring Plan (RPK) in accordance with applicable regulations.

OJK's Chief Executive of Non-Bank Financial Industry Supervision (IKNB) Ogi Prastomiyono said the RPK must be equipped with the approval of all policyholders to convert their rights into subordination loans.

"OJK has examined the planned financial restructuring or RPK submitted on December 30, 2022. Therefore, we need concrete evidence of Kresna Life regarding the commitment or approval of policyholders to convert their rights into subordination loans," said Ogi at the Non Bank Financial Industry Development Press Conference (IKNB) monitored online, on Thursday, February 2.

Ogi said that the more complete RPK must be fulfilled by Kresna Life within one month, since the last meeting of the OJK with shareholders, directors and Commissioners of Kresna Life, namely on February 13, 2023.

"Regarding the plan, the OJK emphasizes that Kresna Life must provide transparency of information to all policyholders, in order to understand the risk scheme, and the consequences for the policy conversion plan to become a subordination in the RPK," he said.

Therefore, in the next week, OJK will wait for how many Kresna Life policyholders agree to the conversion.

Furthermore, said Ogi, his party will also calculate the impact of this conversion on Kresna Life's financial condition, including related to the solvability or ability of Kresna Life to fulfill its various obligations.

"If policyholders are willing to convert policy debt into a subordination loan, but Kresna Life cannot meet the solvency ratio, shareholders must increase their capital," he explained.

In the last RPK submitted to the OJK, Kresna Life did not mention the potential for additional capital.

"If on this last occasion until the specified time limit, the RPK submitted cannot resolve the problem, then the OJK will take further decisive supervisory measures," said Ogi.