Indonesia's IFG Life seeks more funds amidst Jiwasraya takeover

Extra funds will come from fundraising or new capital injections.

Indonesia’s IFG Life is seeking additional funds after taking over the operations of embattled state-owned life insurer Asuransi Jiwasraya, according to media reports.

IFG Life president commissioner Pantro Pander Silitonga said that completing the migration of Jiwasraya portfolio into IFG Life is their primary target this year, a feat that would require lots of funds, a report said.

Extra funds will be obtained from fundraising efforts or new capital injections through state capital participation (PMN) in 2022.

With $2.1b (IDR30t) to $2.45b (IDR35t) needed for the portfolio transfer and PMN of $1.54b (IDR22t), they are still short of $910m (IDR13t), he said.

IFG Life is mulling the sale of assets of Jiwasraya that would raise around $840m (IDR12t), as well as extra fundraising of around $280m to $350m (IDR4t to IDR5t) and additional PMN of around $140m (IDR2t) in 2022.