Proceedings of the First International Conference of Economics, Business & Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia

Research Article

Unprotected Insurance: a Case from Jiwasraya

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  • @INPROCEEDINGS{10.4108/eai.1-10-2020.2304706,
        author={Taofik  Hidajat},
        title={Unprotected Insurance: a Case from Jiwasraya},
        proceedings={Proceedings of the First International Conference of Economics, Business \& Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICEBE},
        year={2021},
        month={4},
        keywords={insurance ponzi bankrupt jiwasraya},
        doi={10.4108/eai.1-10-2020.2304706}
    }
    
  • Taofik Hidajat
    Year: 2021
    Unprotected Insurance: a Case from Jiwasraya
    ICEBE
    EAI
    DOI: 10.4108/eai.1-10-2020.2304706
Taofik Hidajat1,*
  • 1: Sekolah Tinggi Ilmu Ekonomi Bank BPD Jateng
*Contact email: inidotcom@yahoo.com

Abstract

This paper aims to highlight the un prudent governance of insurance companies and explores the causes of the bankruptcy of the Indonesian state-owned insurance company, Jiwasraya. It is a general discussion using the Indonesian regulatory regime, company financial reports, and investigative reports as the central reference point. This study's findings are un prudent corporate governance, unclear business models, and weak supervision are the causes of bankruptcy and default. The novelty of this research is that there are no studies that specifically highlight the Jiwasraya bankruptcy case that practices unethical practices, namely the Ponzi scheme, window dressing, and financial statement fraud.