The Indonesian Financial Services Authority (OJK) has taken a significant step by revoking PT Asuransi Jiwasraya (Persero)’s operating license on February 20, 2025. The decision mandates the prompt dissolution and liquidation of Jiwasraya.
However, the fate of Jiwasraya policies not included in the restructuring process remains uncertain. A concerned policyholder, Machril, is seeking the President’s intervention. The company owes Machril and other non-restructured policyholders approximately Rp 217 billion.
“Our request is that this Jiwasraya policyholder should receive the remaining funds from Kejagung (Jakarta Chief Prosecutor’s Office). President, how can we resolve this? It’s only a small amount left,” Machril stated in Roemah Rempah, Jakarta, on February 21, 2025.
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Machril previously tried to seek assistance through meetings with the House of Representatives (DPR). He attended a session with the DPR’s Commission VI but was told that complete refunds to policyholders are not possible.
He proposes to retrieve funds from the seized assets at the Jakarta Chief Prosecutor’s Office, despite Jiwasraya’s dissolution process. Machril claims that Jiwasraya has around Rp 9.2 trillion in seized assets, including Rp 1.2 trillion in mutual funds and Rp 8 trillion worth of real estate properties as of early 2024.
“Just use the seized assets there. It’s them, Jiwasraya’s money, return it to Jiwasraya,” he declared.
Machril is reluctant to participate in the restructuring process to IFG Life. The restructuring progress as of December 29, 2023, reached 99.7%. He believes the process to be merely a business transaction, with no regard for policyholders’ interests.
“It’s totally unfair and could mar public trust in the insurance sector. They say assets worth Rp 6.77 trillion vanished. Suddenly, we’re told ‘sorry, no money.’ This could have wide-ranging impacts,” he further explained.
Machril maintains that adhering to the restructuring plan cuts his recovery to 40% of the initial funds.
“The funds seized at Kejagung are partly ours as we were targeted. So, please return them. It’s not all government-owned. Some come from other investors, but certainly not all. A portion belongs to us,” he concluded.
The Restructuring Process and Its Controversies
IFG Life’s acquisition of Jiwasraya followed a drawn-out regulatory process aimed at salvaging the troubled insurer. The restructuring process, while nearly complete, has sparked significant debate among policyholders.
Supporters of the restructuring argue that it is the only viable solution to salvage a failed company and return some value to its stakeholders, including shareholders and policyholders. Critics, on the other hand, maintain that it fails to adequately protect the interests of policyholders.
Key aspects of the restructuring include transferring policies to IFG Life and adjusting contracts to recover some portion of the premiums paid by policyholders. However, this process significantly reduces the value of policies, leading to dissatisfaction among a substantial number of policyholders, including Machril.
Government’s Response and Ongoing Challenges
The OJK’s actions signal a grim reality for failing insurers in Indonesia. Nevertheless, the challenges in addressing the concerns of non-restructured policyholders—like Machril—remain.
Despite efforts to resolve disputes through legislative avenues, such as the DPR sessions, policyholders like Machril are left feeling uncertain about their financial futures.
Government officials and regulatory bodies are under increasing pressure to ensure that the restructuring processes are fair and transparent, while also safeguarding public trust in the insurance sector.
Conclusion: Seeking Fairness and Transparency
This case highlights the critical need for clarity and fairness in financial restructuring processes, especially in the insurance sector. Policyholders must be ensured that their interests are adequately protected and that the regulatory framework supports them.
For policyholders like Machril who have raised concerns, seeking assistance from regulatory bodies, legal counsel, and legislative representatives remains essential.
The future of financial regulation in Indonesia will increasingly be shaped by such controversies, underscoring the need for robust oversight and protective measures for policyholders.
Do you have similar concerns about your financial protections or experiences with policy restructuring? Share your thoughts in the comments below, or subscribe to our newsletter for more updates on Indonesia’s financial landscape. Your voice matters, and together, we can advocate for better financial protections and transparency in the industry.
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