AJB Bumiputera Equity Deficit Reaches Rp21.9 Trillion in 2021

The Financial Services Authority (OJK) has stated that it will accelerate the process of assessing the competence and propriety (PKK) or fit and proper test for the Board of Representatives of Members (BPA) of Asuransi Jiwa Bersama Bumiputera 1912 (AJBB).

This is being done, among other things, to improve AJBB's performance, which has shown negative equity since at least 2018.

In 2018, AJBB's assets were recorded at Rp 10.47 trillion, consisting of liabilities of Rp 31.46 trillion and negative equity of Rp 20.98 trillion.

Then in 2019, AJBB's assets decreased to Rp 9.97 trillion, consisting of liabilities of Rp 30.42 trillion and negative equity of Rp 20.44 trillion.

Then in 2020, AJBB's assets decreased again to Rp 9.88 trillion, with liabilities of Rp 31.94 trillion and negative equity of Rp 22.06 trillion.

As of 2021, the assets of this insurance company were recorded as slightly increasing to Rp 10.7 trillion, with liabilities of Rp 32.63 trillion and negative equity of Rp 21.9 trillion.

The OJK revealed that the problems at AJBB have been known since 1997, where AJBB's assets were even smaller than its liabilities, resulting in a deficit of Rp 2.07 trillion. Since then, various efforts have been made to rehabilitate the company, but they have not yet been successful to this day.