Kresna goes about business as usual despite reports of problems related to Jiwasraya

The Financial Services Authority (OJK) has denied rumors that investment management firm PT Kresna Asset Management and life insurer PT Kresna Life are under investigation by the Attorney General’s Office (AGO). The fund manager also reports business as usual with no disruption linked to the high-profile Jiwasraya case, as speculated.

OJK public relations and logistics deputy commissioner Anto Prabowo said on Thursday that Kresna Asset Management (KAM) and Kresna Life were going about business as usual and were not connected to the case of ailing state-owned insurer PT Asuransi Jiwasraya.

“They are not relevant to the AGO’s investigation of assets and accounts [in Jiwasraya],” he said in a statement to the press, referring to reports in local media that KAM and Kresna Life’s securities account had been blocked due to the investigation.

Previously, several local media reported that KAM and Kresna Life’s securities accounts had been blocked by the AGO as they were rumored to be relevant to Jiwasraya’s investment mismanagement case. Such reports emerged after KAM’s customers reportedly claimed that they were unable to redeem their mutual funds from the company.

However, KAM soon dismissed the reports, saying that customers were indeed able to redeem their mutual funds. “We also stress that we are not connected to the Jiwasraya case,” the statement read.

Kresna Life, however, has yet to issue a statement on its rumored connection to the case. 

The AGO ordered the suspension of 800 securities accounts related to Jiwasraya as part of its ongoing investigation to uncover the alleged corruption in the ailing insurer that resulted in its failure to repay policyholders’ claims totaling Rp 16 trillion (US$ 1.17 billion) as of January.