REPUBLIKA.CO.ID, JAKARTA -- Financial Services Authority (OJK) expects that merger four state owned reinsurance companies will be completed by the end of this year. OJK continues to review the transformation of four companies into a new state owned reinsurance company.
"We hope it will be completed in the end of the year, so that we can announce it in the beginning of 2014," Chairman of OJK, Muliaman S Hadad said recently.
The four companies are PT Reasuransi Nasional Indonesia (a subsidiary of PT Askrindo), PT Tugu Reasuransi Indonesia (a subsidiary of PT Pertamina) and PT Reasuransi Internasional Indonesia (a subsidiary of PT Reasuransi Umum Indonesia Group). It will be merged into PT Asuransi Ekspor Indonesia (ASEI) with minimum asset of 70 trillion IDR.
OJK has prepared related regulation. The merger is expected to improve balance of payment, so there will be not lots of Indonesia's foreign exchange to go abroad. During this, Indonesia pays its premium reinsurances to foreign companies abroad.
Hadad said that Indonesia needed a strong insurance company that could provide good services, especially reinsurance. OJK will handle reinsurance project abroad, so that Indonesia can do a saving.
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