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State-owned Companies appealed to use State-owned Companies Insurance Services

Source : Bisnis Indonesia 13 June 2007

Jakarta : The government appeals to State-owned Companies to turn to State-owned insurance companies such as Asuransi Jasindo and Jiwasraya to cover their assets and businesses. The State Minister of State-owned Companies, Sofyan Djalil said he himself hopes there will be a synergy between state-owned companies of various industries in order to get an added value and to benefit the public. He said on opening Executive Breakfast Meeting of State-owned Companies: I’d like to see at least 20 % of insurance placed by state-owned companies go to Jasindo or Jiwasraya. He remarked that the above-mentioned synergy will push the two state-owned insurance companies to develop and be able to compete with private insurance companies.

At the same token he also expects these two companies to keep improving their corporate culture and enhance their company profiles. He said Jiwasraya and Jasindo should be able to recruit as many qualified agents as possible, capable of penetrating into all levels of society and market players.

Last year the former Minister of State-owned Companies, Sugiharto, said that the government had no intention to add state-owned insurance companies equity by providing fresh fund from state budget, but would instead prepare a number of state-owned insurance companies to play in capital markets. The government wished to see to it that state-owned insurance companies have stronger capital to get a larger scope of business, thus reducing a burden to be borne by the government.

As the insurance industry is equity driven, according to the Minister, the sale of state-owned insurance company’s shares are meant to enhance capital structure rather than to generate income for the government. Sinergi Bisnis.

Commenting on the above, Edi Subekti, President Director of Jasindo warmly welcomes the Minister’s appeal that state-owned companies use the services of Jasindo and Jiwasraya to cover their assets. He is convinced that the appeal aims at enhancing the synergy between state-owned companies in developing their businesses. Edi is assured that this will not cause state-owned companies to compete in an unhealthy manner since the minister doesn’t mean to exclude other state-owned insurance companies in the competition to get insurance coverage from state-owned companies.

He commented on Bisnis yesterday We take the appeal as a push to make us work more professionally to render greater satisfaction to the people using Jasindo’s and Jiwasraya’s services. The government currently has shares in general and life insurance companies, namely ASEI, Jasindo, Jiwasraya, and Askrindo.

www.jasindo.co.id @ 13/06/2007


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