LPEI Objects to Being Regulated by the Bill on Insurance Business

Fitri Novia Heriani, IGAP Trisnajaya

Indonesian Export Financing Agency (LPEI) expressed their objection to the Bill on Insurance Business (Bill), during a public hearing session held by the House of Representatives (House), Tuesday (5/2).

The Bill on Insurance Business itself will regulate any insurance activities in Indonesia. If the Bill passed by the House, it is likely that LPEI, which runs four insurance business, will have to comply with the Bill’s provisions.

I Made Gede Erata, LPEI’s Executive Director, asserted that even though LPEI conducts insurance activities and is supervised by Financial Service Authority (OJK), it does not means that LPEI must also obey the Bill.

LPEI argued that it already has a legal basis, namely Law No. 2 of 2009 on Indonesian Export Financing Agency (Law), which regulates its business activities, including insurance. OJK also uses the Law as the basis to supervise LPEI operation. If LPEI must obey the Bill, then the Law must also be revised.

Meanwhile, Andi Rahmat, Member of Commission XI of the House, questioned LPEI’s objection, because LPEI conducts insurance business, which falls under the authority of the Bill.

In addition, Andi explained that implementation of the Bill will not substantially affect LPEI’s business activities.

“Essentially, insurance activities conducted by LPEI are included in the Bill on Insurance Business,” concluded Andi.

(jt/hot)