JAKARTA: With Indonesia’s oldest life insurer tottering on the brink of collapse following years of alleged mismanagement, authorities plan to tighten surveillance of the industry by overhauling regulations and setting up a rescue agency.
The government planned to draft an omnibus law for the financial industry, including insurance, as some of the existing rules are “ancient and inadequate, ” Finance Minister Sri Mulyani Indrawati told reporters in Jakarta. As the crisis at state insurer PT Asuransi Jiwasraya has hurt investor confidence, formulation of the new law “is of the highest priority, ” she said.