Insurance, banking holding companies set to emerge in March, April

The State-Owned Enterprises (SOE) Ministry plans to establish a state-owned insurance holding company and state-owned banking holding company in March and April ,respectively, in trying to improve efficiency of government businesses in the two sectors.

“I hope the state-owned insurance holding company is established next month and will be followed by the establishment of a state-owned banking holding company in April,” said SOE Minister Rini Soemarno in Jakarta over the weekend as reported by kontan.co.id. In addition to improving efficiency, she added, the establishment of the holding companies was expected to improve foreign investors’ confidence to the country’s economy.

The government had assigned state-owned insurance company PT Jasa Raharja as a leading company for the holding establishment with the three other state-owned insurance companies – PT Asuransi Kredit Indonesia (Askrindo), PT Jaminan Kredit Indonesia (Jamkrindo) and PT Asuransi Jasa Indonesia (Jasindo) – as the members. Jasa Raharja corporate secretary Harwan Muldidarmawan said the company would implement the government’s decision to establish the insurance holding company.

He, however, was reluctant to comment on the plan, saying that it was the SOE Ministry’s domain to explain the plan. The government established a number of holding companies recently, including state-owned plantation holding company PTPN III, state-owned mining holding company PT Indonesia Asahan Aluminium (Inalum) and state-owned holding company Pertamina. (bbn)

Source: https://www.thejakartapost.com/news/2019/02/04/insurance-banking-holding-companies-set-to-emerge-in-march-april.html