JAKARTA Dec 28 A consortium led by businessman
Erick Thohir, the president of soccer club Inter Milan, will
invest 2 trillion rupiah ($149 million) in an affiliate of
troubled Indonesian life insurance firm Bumiputera, a statutory
Indonesian authorities have been seeking to shore up the
century-old Indonesian Asuransi Jiwa Bersama Bumiputera 1912
(Bumiputera), without taxpayer money, by using strategic
investors and a backdoor listing.
Thohir's consortium will invest in an affiliate that will
sell new insurance products, while Bumiputera will continue
serving existing policyholders until their claims come due,
according to a statement from Bumiputera and the statutory
"This way, there will be enough cash for Bumiputera to
fulfil its liabilities due to mature in 2017, and in the coming
years due to the movement of funds as a result of investment,"
said Didi Achdijat, a statutory manager of Bumiputera.
Thohir could not immediately be reached for comment.
Despite being under restructuring by Indonesia's Financial
Services Authority (OJK) since 2013, Bumiputera still has
liabilities of around 20 trillion rupiah, compared with assets
of 13-14 trillion rupiah, Adhie Massardi, another of its
statutory managers, told Reuters last week.
Plans to save Bumiputera, which has 6.7 million
policyholders, include a backdoor listing through Jakarta-listed
textile material trader PT Evergreen Invesco Tbk.
Evergreen had planned to conduct a rights issue of 30
trillion rupiah to acquire a holding company set up by
Bumiputera. It then lifted the issuance size to 40 trillion
rupiah before cutting it this month to 10.3 trillion rupiah.
Originally slated for the end of 2016, the rights issue has
been delayed until next year.
Achdijat said Thohir's investment should mean "we don't have
to depend on Evergreen's rights issue plan."
($1 = 13,446.0000 rupiah)
(Reporting by Cindy Silviana; Writing by Gayatri Suroyo;
Editing by Eveline Danubrata and Mark Potter)