IFG’s Jasindo and Swiss Re partnership

Indonesia Financial Group (IFG), a state-owned holding firm specialising in insurance, guarantee, and investment, has appointed its holding member PT Asuransi Jasa Indonesia (Asuransi Jasindo) to collaborate with Swiss Re. The collaboration aims at reinforcing Jasindo’s role as a risk management partner for state-owned enterprises (SOEs) in Indonesia.

The collaboration was formalised with an MoU signing in Jakarta on May 15th, 2024, with a mission of enhancing risk management practices within Indonesia’s SOEs.

IFG as a holding company is committed to helping Jasindo strengthen its role as a risk management partner and reinforcing its position in the sector. The partnership with Swiss Re is part of its strategic move to leverage their extensive expertise in risk assessment. The partnership also aims to foster sustainable growth and operational resilience among state-owned enterprises by providing more comprehensive and effective risk mitigation services.

Collaborating with Swiss Re assists Asuransi Jasindo in better identifying and addressing the protection gap by developing relevant risk mitigation and/or risk transfer solutions. This will in turn optimise, streamline, and broaden the scope of risk management in SOEs.

As a member of the IFG holding supported by Swiss Re, Asuransi Jasindo can now provide ample capacity support to ensure optimal protection within the SOE ecosystem. The partnership aims to bolster Jasindo’s role not only as an insurance service firm, but also as a stalwart provider of sustainable risk management practices.

Swiss Re Head of Public Sector Solutions Asia Pacific Lubomir Varbanov said, "A comprehensive and detailed risk awareness, combined with sound loss prevention and sophisticated risk transfer, can enable SOEs to enhance their effectiveness, sustainability and contribution to Indonesia’s continued rapid development. This is an area where we are especially excited about the value-add that Swiss Re can contribute to this strategic partnership."

SOEs play a prominent and evolving role in the Indonesian economy and they are in a unique position to drive economic growth. They act as commercial entities, agents of government policy and development, and sources of government revenue. They play an influential role in several key sectors of the economy, such as in power generation and transmission, finance, telecommunications, and transportation.

For example, infrastructure development plays a pivotal role in enhancing economic growth and building resilient societies. But investing in infrastructure development is a costly undertaking – Swiss Re Institute estimates that global demand for infrastructure far outstrips the amount of finance currently applied to the sector—contributing to a staggering USD 15 trillion investment gap by 2040. To expedite infrastructure construction in Indonesia, the government assigned some SOEs to lead the construction and operation of various strategic projects.

There are more than 100 SOEs in Indonesia overseen by the Ministry of State-Owned Enterprises (MSOE) and they hold more than $600 billion in assets - 52 percent of the country's GDP.