Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fathan Qorib, Robert Sidauruk
The Financial Services Authority (OJK) has suggested that Bumiputera 1912 Mutual Life Insurance (Asuransi Jiwa Bersama - AJB) change its status from a mutual based insurance entity (Mutual Business) to become a limited liability company (PT).
According to Ngalim Sawega, Deputy Commissioner for Non-Bank Industries at OJK, such a change would make it easier for the company to meet its solvency obligations than under its current form as a Mutual Business.
Ngalim further added that the current solvency level or Risk Based Capital (RBC) of Bumiputera 1912 AJB is at 120 percent, the minimum level prescribed by the Government.
This is because most of the assets of Bumiputera 1912 AJB are non-admitted assets that cannot easily be converted into cash and do not qualify for inclusion in RBC compliance.
“The current liabilities of Bumiputera 1912 AJB are greater than its assets,” said Ngalim in Jakarta on Monday.
To boost its solvency level, Bumiputera 1912 AJB needs to increase admitted asset through raising company capital.
Ngalim explained that such efforts would, however, be difficult if the company is still in form of a Mutual Insurance Business as participation from all policy holders would be needed.
“As a PT, raising capital is much easier due to a company’s legal structure,” added Ngalim.
Ngalim also mentioned that the OJK has sent a second written notice to Bumiputera 1912 AJB in respect of its current RBC.
Further, the OJK has suggested that the members of the Representative Board of Bumiputera 1912 AJB make changes to the board of directors and commissioners of the company to improve internal management.
Although the current solvency level of Bumiputera 1912 AJB will not significantly affect the company’s performance in the near future, Ngalim said that this issue may potentially become a more serious problem in the long term and affect company sustainability. Consequently, Bumiputera 1912 AJB needs to be restructured as a limited liability company to reduce risk.
Bumiputera 1912 AJB is currently the only Mutual Business insurance company in Indonesia. Under the Draft Bill on Insurance Companies which is currently being discussed by lawmakers, only companies in the form of a limited liability company are allowed to provide insurance services to consumers.
(hot/kc)
Fathan Qorib, Robert Sidauruk
The Financial Services Authority (OJK) has suggested that Bumiputera 1912 Mutual Life Insurance (Asuransi Jiwa Bersama - AJB) change its status from a mutual based insurance entity (Mutual Business) to become a limited liability company (PT).
According to Ngalim Sawega, Deputy Commissioner for Non-Bank Industries at OJK, such a change would make it easier for the company to meet its solvency obligations than under its current form as a Mutual Business.
Ngalim further added that the current solvency level or Risk Based Capital (RBC) of Bumiputera 1912 AJB is at 120 percent, the minimum level prescribed by the Government.
This is because most of the assets of Bumiputera 1912 AJB are non-admitted assets that cannot easily be converted into cash and do not qualify for inclusion in RBC compliance.
“The current liabilities of Bumiputera 1912 AJB are greater than its assets,” said Ngalim in Jakarta on Monday.
To boost its solvency level, Bumiputera 1912 AJB needs to increase admitted asset through raising company capital.
Ngalim explained that such efforts would, however, be difficult if the company is still in form of a Mutual Insurance Business as participation from all policy holders would be needed.
“As a PT, raising capital is much easier due to a company’s legal structure,” added Ngalim.
Ngalim also mentioned that the OJK has sent a second written notice to Bumiputera 1912 AJB in respect of its current RBC.
Further, the OJK has suggested that the members of the Representative Board of Bumiputera 1912 AJB make changes to the board of directors and commissioners of the company to improve internal management.
Although the current solvency level of Bumiputera 1912 AJB will not significantly affect the company’s performance in the near future, Ngalim said that this issue may potentially become a more serious problem in the long term and affect company sustainability. Consequently, Bumiputera 1912 AJB needs to be restructured as a limited liability company to reduce risk.
Bumiputera 1912 AJB is currently the only Mutual Business insurance company in Indonesia. Under the Draft Bill on Insurance Companies which is currently being discussed by lawmakers, only companies in the form of a limited liability company are allowed to provide insurance services to consumers.
(hot/kc)