JAKARTA – The Financial Services Authority (OJK) has yet to receive any written documents stating approval of policyholders of PT Kresna Life regarding the conversion scheme from obligations to subordinated loans (SOL).

In the press release quoted Wednesday (22/2), Ogi Prastomiyono, Chief Executive of Insurance, Pension Fund, Financing Institutions, and other Financial Services Institutions of OJK, claimed that said documents shall be sent no later than February 13, 2023.

According to Prastomiyono, Kresna Life has announced to opt for SOL conversion scheme as there are no longer alternative options, such as additional capital from shareholders or partnerships with strategic investors. “For this conversion scheme, there must be written approval from policyholders after they were given comprehensive explanation and the consequences that follow,” he said.

Then, Prastomiyono added that the written approval is critical for this conversion scheme to determine the solvability of the company.

“Kresna Life is asked to disclose any potential risks to its policyholders, such as uncertainty about SOL repayment. The SOL creditors cannot withdraw their funds should Kresna Life does not meet the required health ratio,” Prastomiyono explained. (LK/ZH)