July 28, 2020 | Regulatory Updates

PT Bahana Pembinaan Usaha Indonesia (Persero) (“BPUI”) is officially becoming the principal shareholder of Indonesia's BUMN insurance companies.

The provision for such was stipulated under the Government Regulation Number 20 of 2020 (“GR No. 20/2020”) concerning Additional State Capital Participation onto the Shares Capital of PT Bahana Pembinaan Usaha Indonesia which became effective as of 16 March 2020.

The result of which sees BPUI as the majority shareholder of all of the other state-owned insurance companies. Namely: PT Asuransi Kredit Indonesia (“Askrindo”), PT Asuransi Jasa Indonesia (“Jasindo”), PT Asuransi Kerugian Jasa Raharja (“Jasa Raharja”), and PT Jaminan Kredit Indonesia (“Jamkrindo”), all of which have now been incorporated under BPUI as their "holding company". 

Following such, the Otoritas Jasa Keuangan (OJK) shall now become the body that directly supervise and monitor BPUI and its' actions. 

In accordance with the GR No. 20/2020, on matters concerning the 'additional state capital participation', these following shares: 

(i) 6.610.999 of Series B shares owned by the state at Askrindo; 

(ii) 424.999 of Series B shares owned by the state at Jasindo; 

(iii) 8.499.999 of Series B shares owned by the state at Jasa Raharja; and 

(iv) 7.638.732 of Series B shares owned by the state at Jamrindo; 

were transferred onto BPUI as shares capital.

Accordingly, based on the GR No. 20/2020; Series A shares (Dwi-warna), which are the controlling shares inherent to Askrindo, Jasindo, Jasa Raharja and Jamkrindo respectively, are still being held and owned by the state.

Conclusively, as the state's shares-ownership-composition within Askrindo, Jasindo, Jasa Raharja, and Jamkrindo have changed as a result and as per deigned by the GR No. 20/2020;

Consequently, these said insurance companies statuses have now changed from “Persero” companies into “Non-Persero” companies.