The government has found a buyer for Jiwasraya Putra, a newly formed subsidiary of financially stricken state owned life insurer Asuransi Jiwasraya, according to the president director of the latter company, Mr Hexana Tri Sasongko.
He declined to provide more details, stating that he was still finalising the Conditional Sale and Purchase Agreement (CSPA), reported Antara News Agency. Capital market rules dictate that the buyer cannot be named until the signing of the agreement. Mr Hexana said that the signing could take place in the next two or three months.
The company had conducted due diligence on five potential investors, four of whom are foreign.
Jiwasraya Putra was formed to operate new business for the group. It is owned in part by state-owned lender Bank Tabungan Negara, pawn shop Pegadaian, railway operator Kereta Api Indonesia and mobile services provider Telekomunikasi Selular. Jiwasraya Putra will meet the insurance needs of thousands of employees of these companies and it is hoped that a captive market of that size will attract investors. A strategic investor is being sought for the company. The sale of a stake in the subsidiary is also meant to raise funds to help Asuransi Jiwasraya pay for its policyholders’ claims, which are projected at IDR16tn ($1.1bn). Some assets of Asuransi Jiwasraya have been sold to pay the first tranche of IDR400bn to policyholders.