Tugu Pratama 'keeps grip' on oil sector<\/p>\n
JAKARTA (JP): Most local insurance companies are still unable
\nto break the stranglehold of PT Tugu Pratama in coverage for the
\noil sector despite state-owned oil company Pertamina's recent
\ncommitment to equal opportunities, a leading executive said on
\nTuesday.<\/p>\n
President of state-owned PT Asuransi Jasa Indonesia (Jasindo)
\nAmir Imam Poero said Tugu Pratama continued to dominate insurance
\ncoverage in oil and related industries.<\/p>\n
He said he did not know why the firm was still allowed to
\ncontrol the sector, which contributes 70 percent of the country's
\ntotal indemnity insurance market.<\/p>\n
Speaking at a hearing with House Commission VIII for Finance
\nand Trade, Amir said the exclusive rights given to Tugu Pratama
\nhurt other insurance companies because they had to compete for
\nthe remaining 30 percent of the indemnity insurance pie.<\/p>\n
Tugu Pratama also controlled 16 percent of the 30 percent,
\nJasindo 12 percent, PT Asuransi Berdikari 2.6 percent, PT Sinar
\nMas contains 3.8 percent and PT Astra Buana 2.8 percent.<\/p>\n
State oil and gas company Pertamina earlier said it would not
\nrenew its insurance contracts with Tugu Pratama in its commitment
\nto rid its business of corruption, collusion and nepotism.<\/p>\n
Pertamina's president Soegianto said all the maturing
\ninsurance deals with Tugu Pratama, which at present underwrites
\nall Pertamina's insurance contracts, would not be extended.<\/p>\n
Tugu Pratama Indonesia, established in 1981, is 35 percent
\nowned by PT Nusantara Ampera Bhakti (Nusamba), which is headed by
\nformer president Soeharto's close associate Mohamad \"Bob\" Hasan.
\nPertamina owns 45 percent of the company, with the remaining 20
\npercent held by Pertamina's pension fund.<\/p>\n
Amir said Jasindo had Rp 18 billion (US$2.4 million) of the
\ntotal claim of Rp 53 billion from owners of property burned and
\ndamaged during massive riots in May.<\/p>\n
He said the remaining Rp 35 billion of the total claim would
\nsoon be settled by reinsurance companies.<\/p>\n
Amir estimated Jasindo's total claim payment would surge to Rp
\n419.79 billion in 1998 from Rp 213.50 billion last year.<\/p>\n
He attributed the sharp increase in the payment claims to the
\ncrashes of Garuda Indonesia's two aircraft in Fukuoka, Japan, and
\nMedan and the May riots.<\/p>\n
\"Moreover, we have also had to pay claims from state-owned
\ncompany PT Pelni whose two ships were stranded in China,\" he
\nadded.<\/p>\n
Amir said the rise in the claim payment would cut profit to Rp
\n42.80 billion this year from Rp 45.959 billion last year. (29)<\/p>",
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