JAKARTA - The Supreme Court (MA) has granted the Financial Services Authority's (OJK) appeal against the revocation of the business licence of PT Asuransi Jiwa Kresna (Kresna Life). With this legal decision, OJK wants to ensure the strengthening of investor confidence in the financial services industry in Indonesia.

M. Ismail Riyadi, Acting Head of OJK's Department of Literacy, Financial Inclusion and Communication, said that the Supreme Court's decision cancels the previous verdicts from the Jakarta Administrative Court (PTUN) and the State Administrative High Court (PTTUN) that won OJK's lawsuit.

‘The revocation of Kresna Life's business licence remains valid and final in accordance with applicable regulations,’ he said in a press release on Wednesday (2/4).

OJK revoked Kresna Life's business licence on 23 June 2023 due to the inability to meet the solvency ratio (risk-based capital) in accordance with the provisions and close the financial deficit through capital deposits by shareholders. The move was to protect consumers from greater potential losses.

According to him, the Supreme Court's decision to revoke Kresna Life's licence is to increase public confidence in the financial services industry. The process of settling obligations to policyholders of the insurance company will continue in accordance with the principles of consumer protection.

Previously, OJK had given time to the directors and shareholders to improve Kresna Life's financial condition. However, the company was unable to meet the solvency ratio as required and could not close the financial deficit through capital injection by the controlling shareholder (PSP) or invite potential investors. (LK/LM)