REGULATOR OJK REVOKES PERMIT OF INDONESIAN ASSURER

Indonesia's' financial service authority OJK said late last week that it had revoked the permits of nine venture capital companies and one life assurer – PT Asuransi Jiwa Bumi Asih Jaya, reports Jakarta Post. OJK deputy commissioner for the non-banking financial industry Ngalim Sawega said that the assurer had failed for years to pay out claims, and that it had a negative equity of IDR570bn ($52.7m), with total liabilities of IDR1trn. More than 10,000 policyholders had outstanding claims totalling IDR86.5bn, he said. "To protect customers and prevent more losses, we revoked Bumi Asih’s business permit on October 18” Mr Ngalim said. The assurer had been suspended in 2009 from writing new business, but, Mr Ngalim said, the management convinced the OJK that it could bring in new investors to restabilize the company. “Our leniency was based on our professional judgment, given the company’s long experience and reputation", revealed Mr Ngalim.