Gov’t to Take Measures to Rescue Jiwasraya Customer Fund
Date 15 Januari 2020
Minister of State-Owned Enterprises Erick Thohir has said that Ministry of State-Owned Enterprises continues to work with Ministry of Finance to take measures to establish Jiwasraya Putra in accordance with the President’s direction.
“I have reiterated that the establishment of holding (company) will provide a cash flow of Rp1.5-2 trillion. The next measure is the establishment of Jiwasraya Putra. We will find a strategic partner that will provide approximately Rp1-3 trillion,” Erick told the reporters after attending a Limited Cabinet Meeting at the Presidential Office, Jakarta, Wednesday (15/1).
The formation of the holding, he added, will provide up to Rp8 trillion in the next 4 years. He also added that there are stock assets with valuations of Rp2-3 trillion.
“The measure will solve a saving plan scheme. We will also restructure the interest rate of the insurance policy by lowering the rate in order to maintain the cash-flow, Erick said.
“Minister of State-Owned Enterprises has authority to merge or liquidate (the company), but Mrs. Sri Mulyani (Minister of Finance) may sell (the company) or provide a capital injection,” Erick added.
Regarding the plan for paying customers’ funds, the Minister said that the payment will be made after the establishment of holding at the end of February.
Erick went on to say that a meeting with the House of Representatives, scheduled on 20 January, would be open and transparent and is aimed to prioritize the settlement for the customers in accordance with the President’s direction.
Regarding another State-Owned Insurance Company Asabri, the Minister said that the company’s liquidity is safe and secure because its cash flow and assets are in a good condition. The cash flow for Defense Forces personnel, he added, is guaranteed.
Erick went on to say that maintaining a Good Corporate Governance in Ministry of State-Owned Enterprises requires company leaders who have character, loyalty, and teamwork skills.
He further said that the plan from Abu Dhabi and the United Arab Emirates to make Rp300 trillion investment shows the trust for Indonesia, including its State-Owned Enterprises.
“It is interesting that there are many State-Owned Enterprises in the investment plan, including Pertamina with ADNOC refinery, Pertamina with Mubadala refinery, as well as PLN and Masdar in solar power,” Erick said. (IFR/EN)
Translated by: Ridwan Ibadurrohman
Reviewed by: Mia Medyana