Ministry of Finance insures 1,360 buildings worth Rp10.8 trillion

Ministry of Finance insures 1,360 buildings worth Rp10.8 trillion

Director General of State Assets (DJKN) of the Ministry of Finance Isa Rachmatarwata (third right) in Jakarta on Friday.(22/11/2019). (Antara News/Dewa Wiguna/AK)

Jakarta (ANTARA) - The Ministry of Finance insured 1,360 buildings, with asset value of Rp10.8 trillion, in 2019, by a consortium called the State Property Insurance (BMN).

"Presently, 56 companies have joined the consortium called State Property Insurance (BMN)," Director General of State Assets (DJKN) of the Ministry of Finance Isa Rachmatarwata stated in Jakarta on Friday.

The director general of DJKN, as the operator of BMN, inked an umbrella contract agreement with Chairman of the BMN Insurance Consortium Didit Metha Pariadi on Monday (Nov 18) for the provision of insurance services.

Rachmatarwata noted that an initial stage of the insurance was implemented for buildings in the Ministry of Finance as a model based on Finance Minister’s Decree No. 253 of 2019.

The insured state property comprises office, educational, and health buildings.

He noted that determination of the insurance object prioritized assets having a major impact on public services in the event of any damage to them.

After the building in the Ministry of Finance, in 2020, insurance will be conducted for state property in 10 ministries and institutions, including the Corruption Eradication Commission (KPK).

In addition, state property in the National Counterterrorism Agency (BNPT), Ministry of Finance, Agency for Assessment and Application of Technology (BPPT), Information and Geospatial Agency, Government Goods and Services Procurement Policy (LKPP), and the Coordinating Ministry for Human Development and Culture (Kemenko PMK) will be insured.

Other insured buildings include the State Audit Agency, Finance and Development Supervisory Agency (BPKP), and the National Disaster Management Agency (BNPB).

Furthermore, in 2021, the Ministry of Finance targets to insure 20 state-owned assets in ministries and institutions, and until 2023, all ministries and institutions' assets will be insured.

In the meantime, Director of State Property at DJKN Encep Sudarwan spoke of the applied premium rate of Rp1,961 per thousand miles or 0.1961 percent multiplied by the value of the asset.

He remarked that next week, the Ministry of Finance, as the state property users, will sign an insurance policy with an insurance consortium after the DJKN has inked an umbrella contract.

With the insurance, he noted that the government can mitigate risks to state property, such as fires, and natural disasters, including earthquakes and tsunamis, as well as riots, terrorism, and accidents affecting state-owned buildings.

"With this insurance, we can conduct rehabilitation quickly. In the past, we had to go through the budget process if there was a risk," he pointed out. Related news: Jokowi confirms Rp115-trillion government spending on BPJS health

Related news: Ministry proposes 'grandfathering' in foreign ownership in insurance


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