ASEI, Jasaraharja to insure exporters
JAKARTA (JP): PT Asuransi Export Indonesia (ASEI) has teamed up with state-owned PT Asuransi Jasaraharja Putra to provide insurance coverage to small and medium exporters in a bid to boost non-oil exports.
The executives of the two companies signed a memorandum of understanding on Thursday, to combine their export-related insurance services, ranging from production to claims of export payment.
Jasaraharja Putra president Tabrani Toha said that the new cooperation would strengthen both companies' performance in the insurance market and support domestic small and medium export companies.
"We aim to create a synergy to improve our service and strengthen our businesses," Tabrani said.
He explained that the new cooperation would combine services in one insurance package that would be made available in both companies' outlets throughout the country.
Meanwhile, ASEI president Supardi said the cooperation would especially benefit his company in terms of reaching new customers by utilizing Jasaraharja's wider business networks.
Supardi said the two companies would target only small and medium-sized exporters because they were the most ready to grow as the economy had shown signs of recovery.
"Besides, we cannot target big exporters as most of them are already insured," Supardi said.
Most exporters in Indonesia deliver their products on a free- on-board (FOB) basis, leaving shipping insurance responsibility to importers. This practice has left local insurance firms with less export insurance business.
Supardi explained ASEI and Jasaraharja would provide complimentary coverage for insured exporters. ASEI would cover claims of export payment risks, for instance those arising from bad importers or unexpected political developments in the destination country.
Jasaraharja, meanwhile, will cover claims arising from the physical loss of exported goods from exporters' warehouses to destination ports.
Supardi said both companies were now working out corporate responsibilities arising from the combined insurance services.
"We will set up a technical team in the next two months to study the operational plans for the new services," he said.
He explained that the two companies had not yet set the premium tariffs for the new services, but said that they would depend largely on the situation in export destination countries, exporters' terms of payment and letters of credit.
"But a rough estimate of the annual premium will range from between 0.2 percent to 2.2 percent of the export value," he said.
Supardi said the new services would likely increase ASEI's customers by 50 percent next year, from about 2,000 clients now.
Meanwhile, Tabrani said the new services would help Jasaraharja attain its target of boosting its income growth by 25 percent next year.
Jasaraharja Putra estimated that profits before tax would reach Rp 25.4 billion (US$3.6 million) this year, 48 percent lower than last year's Rp 49 billion. (06)