ASEI, Jasaraharja to insure exporters
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)