Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fitri Novia Heriani, Mahinda Arkyasa
When asked to comment on a draft bill on insurance businesses at the House of Representatives on Wednesday (9/1), three of Indonesia’s most prominent insurance business associations requested that the government to protect the domestic industry by retaining limits on foreign ownership of insurance businesses.
The General Insurance Association of Indonesia (AAUI), Indonesian Life Insurance Association (AAJI), and Indonesian Sharia Insurance Association (AASI) argued that limitations are critical to protect the national insurance industry.
Article 7 of the bill now being discussed says only that insurance businesses can be owned by Indonesian individuals and legal entities, or jointly owned between them and a foreign entity. Actual limitations will be detailed by a subsequent Ministerial Regulation.
AAUI Chairman Cornelius Simanjuntak said that that the Article should include the phrase “in regards to national interest” so that provisions on foreign ownership limitation will be made in accordance.
He also urged the House to establish a state-owned reassurance company in order to mitigate risks within the domestic insurance industry and to reduce their dependency on foreign reassurance companies.
Harry Azhar, House of Representatives member and Deputy Chairman of Commission XI that will make policy on the issue, told Hukumonline (9/1) that it will hold a discussion with every stakeholder to determine the best foreign-domestic ownership ratios for the insurance industry.
The Deputy Chairman noted that the current limits are set by Government Regulation No. 73 of 1992 on Organizing Insurance Business as amended by Government Regulation No.63 of 1999, which allows foreign ownership of Indonesian insurance businesses to a cap of 80%.
That ratio may be changed, he said, “depending on further discussions.”
(eli)
Fitri Novia Heriani, Mahinda Arkyasa
When asked to comment on a draft bill on insurance businesses at the House of Representatives on Wednesday (9/1), three of Indonesia’s most prominent insurance business associations requested that the government to protect the domestic industry by retaining limits on foreign ownership of insurance businesses.
The General Insurance Association of Indonesia (AAUI), Indonesian Life Insurance Association (AAJI), and Indonesian Sharia Insurance Association (AASI) argued that limitations are critical to protect the national insurance industry.
Article 7 of the bill now being discussed says only that insurance businesses can be owned by Indonesian individuals and legal entities, or jointly owned between them and a foreign entity. Actual limitations will be detailed by a subsequent Ministerial Regulation.
AAUI Chairman Cornelius Simanjuntak said that that the Article should include the phrase “in regards to national interest” so that provisions on foreign ownership limitation will be made in accordance.
He also urged the House to establish a state-owned reassurance company in order to mitigate risks within the domestic insurance industry and to reduce their dependency on foreign reassurance companies.
Harry Azhar, House of Representatives member and Deputy Chairman of Commission XI that will make policy on the issue, told Hukumonline (9/1) that it will hold a discussion with every stakeholder to determine the best foreign-domestic ownership ratios for the insurance industry.
The Deputy Chairman noted that the current limits are set by Government Regulation No. 73 of 1992 on Organizing Insurance Business as amended by Government Regulation No.63 of 1999, which allows foreign ownership of Indonesian insurance businesses to a cap of 80%.
That ratio may be changed, he said, “depending on further discussions.”
(eli)