PT Asuransi Jiwasraya was Indonesia's oldest state-owned life insurer, founded in 1859 under Dutch colonial rule. For decades it was a pillar of the state insurance system, providing coverage to civil servants and the broader public.
Between 2008 and 2018, three top executives — president director Hendrisman Rahim, financial director Hary Prasetyo, and finance division head Syahmirwan — systematically looted the company. They embezzled premium revenue and invested it in low-quality assets, with the help of asset managers, businessmen, and fund managers who manipulated the portfolio for personal gain. The scheme was designed to hide Jiwasraya's deteriorating financial condition while enriching those involved.
The scandal broke in 2019 when Jiwasraya defaulted on a policy payment, exposing a hole in its books. Investigations revealed state losses of Rp 16.8 trillion ($1.15 billion). In 2020, the Jakarta Corruption Court sentenced all three executives to life imprisonment, one of the stiffest penalties ever handed down in an Indonesian corruption case.
In February 2025, the Financial Services Authority (OJK) revoked Jiwasraya's business license, ordering the company to cease all operations, prepare a closing balance sheet, and proceed with liquidation. The dissolution marked the end of a 166-year-old institution.
They stole Rp 16.8T by controlling both premium collection and investment, with no separation of duties, until default cost the company its license.
Three executives controlled both the premium revenue and how it was invested — there was no separation between collection and asset management.
The fraud lasted a decade (2008–2018) without detection because the same people who stole the money also produced the reports that should have caught them.
External asset managers and fund managers facilitated the scheme rather than acting as a check, turning the entire investment chain into a conspiracy.
No internal or external audit caught the Rp 16.8T hole until Jiwasraya defaulted on a policy payment — by then the company was already insolvent.
When the people who collect the money also decide how to invest it, no amount of external oversight can replace the separation of duties at the top.
FOLLOW THE EVIDENCE