Insurer Jasa Raharja Makes Big Bet On Infrastructure Bonds Investment
Jakarta. State-controlled insurer Jasa Raharja has earmarked as much as $230 million in investment in infrastructure-related bonds this year amid the government’s bid to accelerate infrastructure development across the country.
The company, which mainly provides insurance coverage for traffic accidents, targets a management fund of Rp 11.4 trillion ($875 million) this year, up 22.6 percent from Rp 9.3 trillion last year, Budi Setyarso, president director of Jasa Raharja, said in Jakarta on Monday.
About a third of targeted managed assets will be put in to bonds, which will finance infrastructure projects and can be issued by either government agencies or the private sector.
The strategy is expected to increase the insurer’s investment return by 26 percent to Rp 915 billion this year compared to last year, the president director said.
It also aims for nearly Rp 5 trillion in revenue for the year, an 11 percent increase from last year, Budi added.
“There is no real limit because this is just an initial guideline, but at most 30 percent [of our managed assets] will be placed in bonds of infrastructure companies, such as in Pelindo,” he said, referring to state-owned port operator Pelindo I, which manages ports in Aceh, North Sumatra, Riau, and Riau Islands provinces.
“The rest will be in stocks and deposits,” Budi added.
Pelindo I plans to raise up to Rp 300 billion from bonds this year.
The company joins a handful of state-owned enterprises that are seeking to raise funds from bonds this year as the government boosts the participation of SOEs in infrastructure development across the nation.
President Joko Widodo’s administration has made infrastructure development its top priority over the next five years, with goals ranging from an additional 35,000 kilowatts of power generated across the country, to constructing 24 new sea ports.
Toll road operator Jasa Marga and telecommunications firm Telkom are both set to issue bonds this year.
Investor Daily
Tags: Keywords: