Indonesia: New state
 reinsurance firm in October

The government plans to introduce a new state reinsurer to manage domestic reinsurance needs that have until now been fulfilled by foreign companies.

According to Gatot Trihargo, the State-Owned Enterprises (SOE) Ministry’s deputy for business services, the ministry has set up four schemes to realise this plan, but it is more inclined to go with the third scheme.

Under the third scheme, Gatot said, PT ASEI Re would become the holding company that manages all other existing reinsurers, namely PT Reasuransi Internasional Indonesia (ReINDO) and PT Reasuransi Nasional Indonesia (Nasre).

ASEI Re was formerly known as ASEI or Asuransi Ekspor Indonesia, the government’s export credit agency. “ASEI Re will become Indonesia Re and the new company will launch in October,” he said.

Following the establishment, it is estimated that the new state insurer will own up to IDR4.4 trillion (USD371.9 million) in total assets and about IDR1.5 trillion in equities.