Allianz may be forced to divest of Indonesian unit
Allianz Life Indonesia, which is currently 99.7% owned by Allianz, has said it will comply with potential new regulations mandating that foreign ownership of companies should be no more than 80%. The director of Allianz Life Insurance, Meylindawati, said that if the regulation does come into effect, the company will consider options such as a private placement, rather than an IPO.

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Linkedin News Desk (The Jakarta Post) Jakarta ● Fri, March 3, 2017

Life insurer Allianz Life Indonesia will comply with regulations stating that foreign ownership of insurance companies should be no more than 80 percent. Allianz group currently owns 99.7 percent of the company’s shares.

Allianz Life Indonesia director Meylindawati told reporters on Thursday that the company would follow whatever regulations the government applied.

(Read also: Stable market next year, says Allianz)

The government is currently drafting a government regulation limiting foreign ownership of insurance companies in Indonesia.

Finance Minister Sri Mulyani Indrawati said recently as quoted by kompas.com that the 80 percent limitation for foreign ownership of Indonesian insurance companies was not new. The limit used to be stated in Government Regulation No.73/1992 before it was amended with Government Regulation No.63/1999, she claimed. (yon/bbn)