Indonesia’s financial regulator has dissolved two pension funds that were managed by Asuransi Jiwasraya, a 165-year-old insurance firm that is now defunct.
One is a financial institution pension fund that the insurer managed on behalf of corporate clients, and the other is a pension fund for its employees. These types of pension funds are known by their respective local acronyms, DPLK and DPPK.
The Jiwasraya DPLK will be transferred to another DPLK selected by the employer or participants, Ogi Prastomiyono, chief executive for insurance, guarantees and pension fund supervision at the Financial Services Authority, says in a statement on March 23.
Meanwhile, assets of the Jiwasraya DPPK will be settled by paying pension benefits to members according to actuarial valuations, he says.
Established in 1859, Jiwasraya’s insurance licence was revoked in January last year after it failed to meet obligations to policyholders.
