Bumi Asih Jaya Insurance Case & 7 Years of Unfinished Boedel Bankruptcy
9/05/2022
 |
| Kasus Asuransi Bumi Asih Jaya & 7 Tahun Boedel Pailit yang Belum Rampung |
The settlement of Bumi Asih Jaya Insurance's bankruptcy estate has not yet been completed, even though 7 years have passed since the revocation of the permit.
The bankruptcy case of PT Asuransi Jiwa Aih Jaya (Bumi Asih Insurance) since 7 years ago has not yet been completed. The payment of claims to thousands of policyholders is said to have not been completed until now.
The bankruptcy case of the Bumi Asih life insurance company, which was founded in 1967, has been going on for a long time and has not been completed. Bumi Asih Insurance and the Financial Services Authority (OJK) have long feuds in the realm of the commercial and civil courts regarding this matter.
This case began when the OJK, formerly known as the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK), imposed a business activity restriction (PKU) sanction for Bumi Asih Insurance in April 2009. At that time, the company was deemed not to have fulfilled its obligation to increase its capital and solvency ratio in under the required conditions of 120 percent.
After 4 years since the PKU sanction, Bapepam, which has merged into OJK, has decided to revoke Bumi Asih Insurance's business license through Decree No. KEP-112/D.05/2013 dated October 18, 2013.
Based on Bisnis , at that time, Asuransi Bumi Asih's financial statements as of December 2012 carried obligations including payment of claims and benefits to policyholders worth Rp1.3 trillion. On the other hand, the company's allowed assets are only Rp.294.14 billion. So that the company's wealth at that time to fulfill the obligations was minus IDR 1.01 trillion.
The report stated that the ratio of achieving the solvency level was minus 1159 percent. The company's equity was also minus IDR 768.4 billion, far below the stipulation that required insurance companies to have a capital of IDR 70 billion at the time and IDR 100 billion a maximum of December 31, 2014.
Thus, the company can only be saved if there are investors who inject funds. As a result of this appalling condition, OJK included Bumi Asih Insurance under special supervision to monitor the health process. Not healthy, OJK also revoked the company's business license.
In the decision to revoke the business license, Bumi Asih Insurance is required to settle its obligations to all policyholders. However, this obligation was never carried out, which eventually prompted OJK to file a bankruptcy suit against Bumi Asih Insurance up to a cassation level in 2015. The request of the supervisory agency for the financial services sector was granted by the Supreme Court so that Bumi Asih Insurance officially bears the status of bankruptcy and insolvency since August 2015.
Objecting to OJK's action, in 2017, the company also sued OJK to the Central Jakarta District Court on charges of violating the law. The revocation of a business license by the OJK is deemed not to be in accordance with the procedure. The Plaintiff claims that the revocation of this business license is contrary to Article 42 paragraph (1) in conjunction with Article 42 paragraph (4) of PP No.73/1992 concerning the Implementation of Insurance Business. This is because the period between the limitation of business activities to the revocation of a business license is only 12 months.
Unmitigated, Bumi Asih Insurance sued OJK to pay compensation worth Rp. 5.4 trillion. The loss was claimed based on the loss of income and the potential loss of investment since the company was sanctioned by PKU in 2009.
On the other hand, the bankruptcy process of Asuransi Bumi Asih did not run smoothly. In 2017, three initial curators who were in charge of managing and settling the company's bankruptcy estate were arrested by the Criminal Investigation Unit of the National Police on charges of embezzlement and money laundering in the bankruptcy case of Asuransi Bumi Asih. They allegedly transferred debtors' assets to their personal accounts.
