News Asia01 Jul 2020

Indonesia:Attorney General names 13 asset management firms as suspects in Jiwasraya case

01 Jul 2020

The Attorney General's Office (AGO) has named 13 asset management companies and a Financial Services Authority (OJK) official suspects in a case of alleged corruption and money laundering involving state-owned insurer Asuransi Jiwasraya.

Investigations have been underway for around six months and are ongoing.

Jiwasraya is accused of mismanagement when it invested premiums from the JS Saving Plan, one of the company’s insurance products, in multiple assets. As a result, it was unable to pay out IDR16tn ($1.1bn) in matured policies due in February to its policyholders, reported The Jakarta Post.

AGO spokesman Hari Setiyono said that the OJK deputy commissioner for capital market monitoring, identified only as FH, was a new suspect in the case. The office accused him of abuse of power, which allegedly paved the way for Jiwasraya's investment mismanagement during FH’s tenure as OJK department head of capital market monitoring from 2014 to 2017.

“Despite being a suspect in the case, we haven’t arrested the OJK official as of now,” Mr Hari said during a press conference.

The AGO accused the asset management companies of mismanaging or laundering the premium revenue collected by Jiwasraya from 2014 to 2018.

The companies allegedly caused state losses amounting to IDR12.35t, 73.5% of the total IDR16.81tn in state losses incurred as a result of Jiwasraya’s investment mismanagement as audited by the Supreme Audit Agency (BPK) from 2008 to 2018.

Earlier, the AGO had named six suspects in the case including three former Jiwasraya executives, namely former president director Hendrisman Rahim, former finance director Hary Prasetyo and former finance and investment division head Syahmirwan.

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