Principal committed to Indonesian market

JAKARTA (JP): Iowa-based pension fund company Principal Financial Group says it is committed to Indonesia's long-term prospects despite the current crisis.

The company's president, J. Barry Griswell, announced here recently that Indonesia's 207 million population was a vast market for an insurance company like Principal Financial Group, which runs a retirement fund scheme.

"Though Indonesia is facing its worst-hit crisis in decades, it remains an important market for us," he said.

Principal Financial Group has a strong presence here through PT Asuransi Jiwa Principal Indonesia, which also offers a defined contribution plan through Dana Pensiun Lembaga Keuangan Principal Egalita Indonesia.

As of the end of 1997, Principal Indonesia, established in 1994 with a paid-up capital of Rp 28.21 billion (about US$3.1 million at current rate), managed total assets worth Rp 1.24 billion and collected premiums worth Rp 511,940 million.

Principal Indonesia's vice president, Iskandar Sutadisastra, said the country's retirement funds industry had not been optimally exploited.

Citing data from the Ministry of Finance, he said that of the country's total 36 million salaried employees, only one million employees had joined a pension fund.

"This means that the country's pension fund business remains a lucrative market to tap," he said. (aly)