BPK Conducts Comprehensive Audits of State-Owned Insurance Companies and Their Subsidiaries
JAKARTA, BPK Public Relations – The Audit Board of the Republic of Indonesia (BPK) held an entry meeting with nine State-Owned Enterprises (BUMN) in the insurance sector to audit the performance of insurance management, State Capital Participation (PMN), and asset and liability transfers for the period from 2022 to the first semester of 2024. The meeting took place in Jakarta on Friday (04/10).
The entry meeting was led by Board Member VII of BPK, Slamet Edy Purnomo, and attended by Board Member II, Daniel Lumban Tobing, and BUMN company leaders.
In his remarks, Board Member VII stated that the performance audit would take a comprehensive approach, examining not only the BUMN’s insurance management portfolios but also aspects related to regulations, authorities, policies, and supervision.
"The focus of this audit is to evaluate government policies, including those of the Ministry of BUMN, the Ministry of Finance, the Financial Services Authority (OJK), and other relevant institutions. BPK will also look into corporate governance, internal audit supervision, business strategies between holding companies and subsidiaries, and PMN management," he said.
The audit will assess key areas, such as financial health, claim ratios, the capital adequacy in the insurance industry, premium rate policies, and investment policies. Additionally, BPK will review procedures and risk management practices within the insurance business, and investigate cases of claim failures and subrogation rights.
This audit is motivated by the vast potential of the insurance market in Indonesia, which has yet to be completely realized by local insurance providers. To date, local players have only captured a small share of the market, thus audit aims to identify the underlying issues.
The audit results are expected to provide recommendations and alternatives for improving the performance and competitiveness of BUMN in the insurance sector, allowing them to compete more effectively and capture market potential in a healthy and sustainable way.
The entry meeting concluded with the submission of an audit assignment letter from Board Member VII to the President Director of PT Bahana Pembinaan Usaha Indonesia (Persero), Hexana Tri Sasongko, marking the official commencement of the audit.
Also present at the meeting were Director General of Audit VII Bernardus Dwita Pradana, Director General of Audit II Nelson Ambarita, along with high-level officials and auditors from BPK.