Case : ASABRI

ETIKA DAN TATA KELOLA

G23 Group 2:
Irham Suharja (NPM 2306300552)
Rinaldi Wilopo (NPM 2306189635)
Agung Wahyu (NPM 2306299765)
Putri Kartika (NPM 2306300930)
Irena Shafira (NPM 2306189300)
Ferlita Aprillia (NPM 2306300312)
01 BACKGROUND
Background
PT ASABRI (Persero) is a State-Owned
Enterprise assigned by the Government to
manage the social insurance program for TNI
Soldiers, members of the National Police and
State Civil Service Employees (ASN),
consisting of Government Employees with
Employment Agreements (PPPK) and Civil
Servants (civil servants) within the Ministry of
Defense and Polri.

Scope of business: Regulatory basis:

- Social insurance such as Program
Tabungan Hari Tua (THT), Jaminan
Kecelakaan Kerja (JKK), Jaminan
Kematian (JKm) and Retirement
- Investment activities in accordance with
statutory regulations
Government Regulation Number 102 of 2015 concerning
Social Insurance for Soldiers of the Indonesian National
Army, Members of the National Police of the Republic of
Indonesia and Employees of the State Civil Apparatus
within the Ministry of Defense and National Police of the
Republic of Indonesia, which was promulgated on 28
December 2015 and retroactively valid on 1 July 2015 as a
replacement Government Regulation Number 67 of 1991.
Shareholder: as a limited liability company (PT), the shareholders are 100% owned by the Republic of Indonesia,
represented by the Minister of BUMN as shareholder or GMS

Organization structure as Peraturan Direksi No: PER/OT.01/01-AS/II/2020 as follow:

RUPS

Dewan
Komisaris Direksi

Komite Sekretaris Satuan Divisi

Komite Sekretaris Divisi
Asuransi & Dewan Pengawas Kepatuhan &
Audit Perusahaan Perencanaan &
Risiko Usaha Komisaris Internal Manajemen
Pengembangan Risiko
02 CHRONOLOGY
 CHRONOLOGY ASABRI CASE
(Based on statement from Leonard Eben Ezer Simanjuntak, Head of Attorney General's Legal Information Center)
2012
The President Director,
Director of Investment and
Finance and Head of
Investment Division of Asabri
agreed with parties outside
Asabri, namely Heru Hidayat,
Benny Tjokrosaputro and
Lukman Purnomosidi
There was a pseudo
transaction involving the
exchange or purchase of
Asabri's portfolio with shares
belonging to Heru Hidayat,
Benny Tjokrosaputro and
Lukman Purnomosidi which
had manipulated performance
reporting and Asabri also sold
shares at a price below the
acquisition price
2019
Asabri shares which were sold
at a price below the acquisition
price were buyback by Heru
Hidayat, Benny Tjokrosaputro
and Lukman Purnomosidi
through underlying mutual
funds controlled by investment
managers managed by Heru
Hidayat and Benny
Tjokrosaputro
03 JUSTIFICATION
 Theory Explanation and Justification of Major
Conflict of Interest Occuring in Asabri

The a theory that arises when business activities are not always
Agency managed directly by the entity owner, and discussions related to
Theory management are left to agents.

In this case, the positions of Heru, Benny and Lukman are considered to be agents involved in
manipulating Asabri's portfolio performance to make it appear as if it is good. With this transaction, it
appears as if the shares in Asabri's portfolio are high value and liquid, even though the transactions
carried out are only pseudo transactions and will only benefit Heru, Benny and Lukman. This is
because Asabri sold the shares in its portfolio at a price below the acquisition price of these shares

The actual conflict of interest that appears is in the agreement made by Asabri management
with Benny Tjokrosaputro and Heru Hidayat to regulate and control Asabri's investment
portfolio in the form of shares and mutual funds. This agreement is certainly detrimental to the
company and actually benefits these two external parties. The main problem with fraud in
public asset management institutions is political pressure and internal governance problems
The Impact of Conflict of Interest

As a result of the failure to invest in shares in Asabri, the Company's financial condition
deteriorated. The value of state losses arising as a result of irregularities or unlawful acts in the
On company management of Asabri's finances and investment funds from 2012 to 2019 was IDR 22.78 trillion.
performance The loss was in the form of the value of Asabri's investment funds which were placed in shares
and mutual funds without complying with the provisions

There is an increasingly strong opinion among

policyholder that the insurance premiums they invest in
are not being managed well. It could have a systemic
On impact on a number of other insurance companies. The
policyholder issue of financial difficulties currently being experienced
by PT Asabri can reduce the general public's trust in the
insurance industry, let alone the government, so that
people become increasingly wary when it comes to
taking out insurance.
04 CRITICAL REVIEW
 Critical Review of POJK No. 73/POJK.05/2016 and OECD

Principles of Corporate Governance according to regulation no. 73/POJK.05/2016 concerning Good

Governance are:

1. Transparency
2. Accountability
3. Responsibility
4. Independency
5. Fairness

Corporate Governance carried out by PT. Asabri has violated the principles that have been proclaimed.
Critical Review of POJK No. 73/POJK.05/2016 and OECD

No. Principles Review

1 Transparency PT ASABRI is not open and transparent regarding its share portfolio, ASABRI sells shares in its portfolio at
a price below the acquisition price of the shares and did not display a list of its investments in Asabri's 2017
and 2018 annual reports.

2 Accountability PT ASABRI purchased or exchanged shares in the Asabri portfolio with shares owned by three people,
namely Heru, Benny and Lukman. The prices of these shares were manipulated to become high prices,
with the aim of making Asabri's portfolio performance look good.

3 Responsibility The selling value of the portfolio of shares issued does not match the acquisition price in the financial
statements, and there is also manipulation of financial reports regarding income accounts.

4 Independence PT ASABRI collaborated with Heru, Benny and Lukman, to buy or exchange shares in the Asabri portfolio
with their own shares at prices that had been manipulated to be high.

5 Fairness This manipulation of the share portfolio value only benefits ASABRI together with Heru, Benny and
Lukman. This caused losses to investors, the total loss was 23.73 trillion, after going through an
investigation in matching the data the loss was reduced to 22 trillion.
05 EVALUATION TO
THE REGULATION
Evaluation of the extent of Asabri (including BOC & BOD)

PT. Asabri applies the principle of two tier boards in accommodating conflicts of interest between capital owners and
management:
1. Board of Directors (BOD) is a group of individuals elected by the company's shareholders to represent the
company's interests, be responsible for all actions related to managing the company in accordance with its aims
and objectives, implement all codes of ethics and policies in accordance with their duties and authority.
2. Board of Committee (BOC) is a group of individuals elected by shareholders to oversee company policies and
provide advice to the directors/board of directors. In the structure of Indonesian public companies, the Board of
Commissioners is the second highest position after the General Meeting of Shareholders.
Evaluation of the extent of Asabri (including BOC & BOD)

1. In this case, the former President Director and Investment Director of ASABRI were unprofessional and
negligent in carrying out their duties, obligations and authority. This case was established after the two directors
together with the head of ASABRI's investment division were proven to have manipulated portfolio performance
through manipulation of share prices.
2. The main director, Director of Finance & Investment, as well as the head of investment did not make decisions
wisely, the risks and impacts of decisions from various points of view were ignored by them, so that the company
and the state experienced large losses on top of their temporary profits, it is proven that, the state suffered losses
of around 23 trillion as a result of this manipulation.
3. In this case, supervision of the directors was undirected and ineffective, resulting in fraud occurring therein.
06 CONCLUSION &
RECOMMENDATION
Conclusion
• The Asabri case started with a conflict of interest that occurred between company
management involving three external parties in managing Asabri's investments, which of
course had an impact on losses for Asabri and also for policyholders.
• Evaluation of Asabri's Governance Implementation regarding the extent to which Asabri,
including the Board of Commissioners and Directors, does not implement all existing
regulations consistently and is unable to provide accountability in the form of reports to the
public or regulators regarding corporate governance based on POJK Number
73/POJK.05/2016
• Asabri has not implemented good governance in accordance with the regulation and
G20/OECD Principles of Corporate Governance.
Recommendation
1. Regular control or strict audits from internal and external parties need to be conducted

2. Multilevel approval, justification and assessment from external parties must be encouraged

3. Whistle Blowing & witness security systems must be instilled and supported by every
employee

4. Actions and decisions that violate applicable regulations must be immediately detected and
handled by the authorities
05 LESSON LEARNED
Lesson Learned
● Ethical Conduct and Governance: ASABRI's case underscored the importance of ethical
conduct and governance. Clear guidelines and stringent enforcement of ethical standards are
crucial to prevent conflicts of interest and financial misconduct.
● Risk Management and Internal Controls: Effective risk management systems and internal
controls are imperative in preventing fraudulent activities.
● Transparency and Accountability: The case highlighted the importance of transparency and
accountability within state-owned enterprises.
● Public Confidence and Reputation: The scandal significantly impacted public confidence in
financial institutions and the broader economic system. Rebuilding trust and reputation through
transparent actions and corrective measures becomes crucial after such incidents.
Reference
Utama, S., Fitryani, Siregar, S. V., Rahadian, Y., Utama,C.A., Simanjuntak, J. (2022) Tata Kelola Korporat
di Indonesia: Teori, Prinsip, dan Praktek, Penerbit Salemba Empat

Peraturan Otoritas Jasa Keuangan No. 73/POJK.05/2016 Tentang Tata Kelola Perusahaan Yang Baik
Bagi Perusahaan Perasuransian

www.asabri.co.id

https://money.kompas.com/read/2021/02/03/030400326/ini-kronologi-korupsi-asabri-yang-merugikan-neg
ara-rp-23-7-triliun
MM FEB UI

THANK YOU