ReIndo, Tugu-Re, Nasional-RE and PT Tugu Reasuransi Indonesia would be merged into PT Asuransi Ekspor Indonesia (ASEI), State Enterprises Minister Dahlan Iskan said.Jakarta (ANTARA News) - The Ministry of State Enterprises plans to merge four state-owned reinsurance companies into a new state-owned reinsurance company with a minimum asset of Rp70 trillion.
ReIndo, Tugu-Re, Nasional-RE and PT Tugu Reasuransi Indonesia would be merged into PT Asuransi Ekspor Indonesia (ASEI), State Enterprises Minister Dahlan Iskan said here on Thursday.
ReIndo is a subsidiary of state-owned PT Reasuransi Internasional Indonesia while Tugu-Re is a subsidiary of PT Pertamina and Nasional-RE is a subsidiary of PT Reasuransi Umum Indonesia.
"The four companies will be merged and ASEI would be the parent company," he said at a leadership meeting at Bank Mandiri.
Dahlan said the merger would enable the government to have a reinsurance company with a huge capital and assets.
"So far, we have only small-scale state-owned reinsurance companies while we instead need a reinsurance company that could cover big activities," he said.
He said the ASEI`s capacity to carry out business had come down while the company was initially aimed at strengthening national exports.
"With the presence of export financing institutions, export credits can no longer be done through the ASEI and this resulted in a decline in the ASEI`s performance," he said.
Dahlan said the new state-owned reinsurance company was expected to become a reality before the end of 2013.
"Companies that own these subsidiaries must immediately release them and merge them into the ASEI," he said.
He said he hoped the merger could be realized in the next two months so that the new company can start operations fully in 2014.
"This will be in the national interest. So far, a lot of foreign exchange income from insurance has been drained abroad," he said.(*)
Editor: Heru Purwanto
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