A Chronological Review: Jiwasraya

Abstract

In the late of 2019, Indonesian public had been shocked by the news of a mega financial scandal that involved a state-owned insurance enterprise, Jiwasraya. It raises questions, how did it happened and how well did it handled. This paper aims to highlight Jiwasraya case with chronological interpretation. Document review and financial statement analysis were used as research methods. Jiwasraya's financial reports have shown that it is not in a good state since 2015, despite showing signs of recovery in 2017, however, Jiwasraya's financial performance has been so bad that it is unable to present the 2018 and 2019 financial reports. The public accountant who audited Jiwasraya's financial statements provided an “adverse opinion” in 2017, as well as a shortage of reserves of IDR. 7.7 trillions. The Financial Services Authority has given sanctions and management has changed several times in 2018. Set of regulations have been implemented to synchronized the business activities of the insurance industry, nevertheless, severe sanctions are required for each violation.