PT Jasindo to insure four new RI satellites

JAKARTA (JP): The state-owned loss insurance company, PT Jasindo, will lead a consortium of local and foreign insurance firms to insure four new Indonesian-operated satellites for about US$350 million each.

Jasindo's president Amir Imam Poero said here yesterday the satellites, to be launched within the next two years, would be operated by state-owned PT Telkom and two subsidiaries of PT Pacific Satelit Nusantara.

He said that PT Pacific Satelit Nusantara and PT Telkom had appointed Jasindo to lead the consortium, but they had yet to sign the in-orbit-satellite insurance deals.

"We'll decide the premium later," he said. "We're currently inviting local insurance firms to insure the satellites."

He said that the local consortium might carry about 20 percent of the underwriting risk while the remaining 80 percent would be reinsured to foreign companies.

"But we'll see after we have the consortium," he said.

The first two satellites, Garuda-1 and Garuda-2, will be launched next year and operated by PT ACes (ASEAN Cellular Satellites), a subsidiary of PT Pacific Satelit Nusantara.

The two other satellites will be launched in 1999.

One will be operated by state-owned PT Telkom, and the other by PT Multi Media Asia, a subsidiary of PT Pacific Satelit Nusantara.

Jasindo, in cooperation with Citra International Underwriter and 17 other domestic and foreign insurance companies, insured Indonesia's Palapa-C1 satellite for $164.88 million, which included the launch.

Amir was speaking after the presentation of a BBB rating to Jasindo by the international rating agency Standard and Poor's.

He said the BBB rating was needed by Jasindo to enable it to enter the global insurance market.

"We can only participate in the global market if we are good quality," he said.

He said the first claims-paying ability rating in Indonesia reflected Jasindo's leading market position, good financial structure, profitable earnings track record and the benefits of ownership by the Indonesian government.

The rating is moderated by Jasindo's investment assets quality and perceived industry risk associated with the Indonesian insurance industry's current stage of evolution and planned deregulation.

Jasindo is a leader in Indonesian insurance with a 19 percent market share. (bnt)