ID :
78933
Tue, 09/08/2009 - 00:36
Auther :
Shortlink :
https://www.oananews.org//node/78933
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GOVT PLANS TO ISSUE BONDS TO INJECT FUNDS TO JIWASRAYA
Jakarta, Sept 7 (ANTARA) - The government plans to issue zero coupon bonds to inject funds to state-owned life insurance company PT Asuransi Jiwasraya, a minister said.
"The planned injection of funds will increase the company's RBC (risk-based capital) ratio," State Enterprises Minister Sofyan Djalil said here on Monday.
A shortage of capital was one of the problems facing the state-owned insurance company, he said.
"This (shortage of capital) has existed since a long time ago. It is only now that it can be handled," he said.
RBC is an insurance company's ratio of financial soundness to security.
Jiwasraya's RBC currently stands at 127 percent, or close to the minimum limit of 120 percent applicable to life insurance companies.
Sofyan declined to mention how much the government could inject to Jiwasraya by issuing the zero coupon bonds.
He said the ministry had completed its discussions with the Capital Market and Financial Institutions Supervisory Board (Bapepam-LK) about the matter and was now waiting for approval from the House of Representatives (DPR).
"The value is still unknown. But according to the regulation, Jiwasraya will pay the government profit from its activities," he said.
The planned issuance of zero coupon bonds would not harm the government's interest because it would not burden the state budget, he said.
"In terms of cash flow, Jiwasraya has no problem. But it still has to meet the regulation requiring its RBC to reach a certain percentage," he said.
By the end of the first semester of 2009, Jiwasraya's paid-up capital stood at Rp400 billion while the amount of funds managed by the company reached Rp5.1 trillion. ***
"The planned injection of funds will increase the company's RBC (risk-based capital) ratio," State Enterprises Minister Sofyan Djalil said here on Monday.
A shortage of capital was one of the problems facing the state-owned insurance company, he said.
"This (shortage of capital) has existed since a long time ago. It is only now that it can be handled," he said.
RBC is an insurance company's ratio of financial soundness to security.
Jiwasraya's RBC currently stands at 127 percent, or close to the minimum limit of 120 percent applicable to life insurance companies.
Sofyan declined to mention how much the government could inject to Jiwasraya by issuing the zero coupon bonds.
He said the ministry had completed its discussions with the Capital Market and Financial Institutions Supervisory Board (Bapepam-LK) about the matter and was now waiting for approval from the House of Representatives (DPR).
"The value is still unknown. But according to the regulation, Jiwasraya will pay the government profit from its activities," he said.
The planned issuance of zero coupon bonds would not harm the government's interest because it would not burden the state budget, he said.
"In terms of cash flow, Jiwasraya has no problem. But it still has to meet the regulation requiring its RBC to reach a certain percentage," he said.
By the end of the first semester of 2009, Jiwasraya's paid-up capital stood at Rp400 billion while the amount of funds managed by the company reached Rp5.1 trillion. ***
