SINGAPORE, May 5 (Bernama-BUSINESS WIRE) — AM Best believes that the upcoming establishment of an insurance holding company by Indonesia’s government will likely lead to greater corporate governance of government-owned companies in the country’s insurance industry.
Indonesia’s Ministry of State-Owned Enterprises is in the process of establishing an insurance holding company, to be led by state-owned investment holding company PT Bahana Pembinaan Usaha Indonesia. A new Best’s Commentary, titled, “Indonesia Strengthens State-Owned Insurers with Holding Company Formation,” states that in general, state-owned enterprises form an important pillar of emerging markets, serving as drivers of economic and strategic interests by managing and transferring the risks of infrastructure developments, energy, credit guarantee, health care and agricultural projects, among others.