Prudential resumes operations
Zakki Hakim, Jakarta
PT Prudential Life Assurance, the offices of which were closed down after it was declared bankrupt last month, resumed operations on Tuesday.
The reopening followed a Friday decision by the judge supervising the Prudential bankruptcy case to allow the company to resume services.
Prudential spokesman Edwin Pieroelie said in a release that the company's marketing and branch offices and customer services had resumed operation, while the head office was expected to reopen within the week.
"The management now has two priorities: to replace the current controversial (court-appointed) receiver and to lodge an appeal with the Supreme Court (over the bankruptcy ruling)," Edwin said.
Prudential has accused receiver Yuhelson of not being neutral in the bankruptcy case because he is a former partner of the lawyer who filed the bankruptcy suit against Prudential.
Prudential lawyer Ricardo Simanjuntak told The Jakarta Post that Prudential was looking forward to seeing the commercial court, in a hearing on Wednesday, remove Yuhelson from his position and replace him with a more competent lawyer.
According to Law No. 4/1998 on bankruptcy, a company declared bankrupt loses its rights to manage its assets and a receiver is appointed with the authority to take care of all of its assets, even though an appeal may have been lodged with a higher court.
Separately, the Indonesian Insurance Council (DAI) and Indonesian Life Insurance Association (AAJI) on Tuesday urged the government to amend the Bankruptcy Law, saying that the Ministry of Finance should have the final say in declaring an insurance firm bankrupt.
"It is the ministry that has the full knowledge of the solvability of an insurance company," said DAI chairman Hotbonar Sinaga.
Top economics ministers lamented the commercial court's decision to declare Prudential Life Assurance (a unit of UK-based Prudential Plc.) bankrupt as it is a solvent company with a risk- based capital of 255 percent, well above the minimum requirement of 100 percent.
Meanwhile, the Prudential management met with Minister of Manpower and Transmigration Jacob Nuwa Wea on Tuesday to seek support for its case.
Jacob told reporters after a closed-door meeting that he would talk to President Megawati Soekarnoputri and send a letter to the Ministry of Finance in a bid to find a way to save the company from being declared bankrupt.
"We surely want to avoid some 8,000 agents and 300 employees losing their jobs due to the bankruptcy ruling," he said.
The commercial court declared Prudential bankrupt on April 23 after a former agent/consultant, Lee Boon Siong, filed a suit on April 7, accusing the company of failing to pay him bonuses.