An affiliate of struggling Indonesian life insurer AJB Bumiputera 1912, or Bumiputera, will receive a capital injection of 2 trillion rupiah from a consortium led by media mogul Erick Thohir, The Jakarta Post reported Dec. 29, citing the company's statutory management coordinator, Didi Achdijat.
The consortium will invest the capital into PT Bumiputera Life Insurance, or BLI, a newly established firm that will continue the operations of Bumiputera. BLI is expected to commence operations in 2017, after receiving a license from Indonesia's Financial Services Authority in November.
Bumiputera's assets stand at 11.3 trillion rupiah, while its liabilities totaled 29 trillion rupiah in 2015. BLI was set up since Bumiputera operates as a mutual insurance company where policyholders serve as shareholders, preventing outside investment.
BLI will share 40% of its profit with Bumiputera.
As of Dec. 28, US$1 was equivalent to 13,485 Indonesian rupiah.