Mortgage lender Bank Tabungan Negara (BTN) and Asuransi Jiwa Indonesia (Jasindo) have joined hands to establish a life insurance joint venture (JV) in early 2014, as they aim to tap the insurance sector in the country.
BTN president director Maryono was quoted by The Jakarta Globe as saying, "Currently, [the joint venture] is still in the process with Jasindo. We plan to become a majority shareholder."
If the proposed plan turns into reality, it will mark BTN’s first venture into the insurance business.
Jasindo retail operations director Sahata Tobing told the news portal, "The ownership of this life insurance joint venture will be 51 percent BTN, and the rest will be Jasindo."
Maryono further explained that BTN and Jasindo will submit their proposal for approval with the Financial Services Authority (OJK) early in 2014, and they expect that the JV will be operational during the first quarter of 2014.
The new life insurance JV, which will start its operation with an initial capital of IDR300bn ($25m), is also looking to boost the numbers of its clients.