State-owned insurance company Asuransi Sosial Angkatan Bersenjata Republik Indonesia (Asabri) has been implicated in a corruption case after its stock portfolio plunged, prompting scrutiny from high-ranking officials, reported The Jakarta Post.
Coordinating Political, Legal and Security Affairs Minister Mahfud Md said he would summon Finance Minister Sri Mulyani Indrawati and State-Owned Enterprises Minister Erick Thohir to discuss the allegation and the potential state losses.
Mr Mahfud said that he had received word of allegations involving Asabri’s investment losses amounting to as much as IDR10tn ($729m). The case came to light last week.
Asabri, which manages social insurance and pension funds of personnel of the National Police, the Indonesian military and employees of the Defence Ministry, reportedly saw the prices of several stocks in its portfolio decline by more than 95% last year.
Separately, Mr Erick said he would wait for the results of an audit by the government audit board before determining the next step in the Asabri case. “We don’t want to jump to conclusions,” he said.
Another state-owned insurer, Asuransi Jiwasraya, is facing a corruption investigation by the Attorney General’s Office (AGO) and the Supreme Audit Agency (BPK), after it failed to make payments on matured insurance policies. There are also charges of investment mismanagement at the insurer.
Asabri’s corporate secretary said that he would publish an explanation on the company’s investment strategy after confirming the matter with relevant stakeholders.