The Financial Services Authority (OJK) says that AJB Bumiputera is on track to overcome its financial problems. OJK chairman Mr Wimboh Santoso said that the life mutual has been operating its business well.

The life insurer has released several new products and is working with some banks and state-owned corporations. The latter, which provide a customer base for the insurer, include Telekomunikasi Indonesia and power distribution company Perusahaan Listrik Negara, according to local media reports.

AJB Bumiputera had claims arrears of at least IDR1trn ($72m) last year and would need to liquidate assets to settle the claims. Mr Wimboh urged policyholders not to worry because the insurer owns many and quite large assets.

Previously, AJB Bumiputera had pointed out that a 2004 decree issued by the Minister of Finance set out that one measure for assessing the health of insurance companies is current assets (deposits, shares, bonds, etc.). Under the decree, the insurer was deemed as not having sufficient current assets. AJB Bumiputera's assets are mostly in the form of real estate.

In October 2016, OJK appointed a statutory manager for AJB Bumiputera. A new board of directors was appointed last November and it took over management of the insurer from the statutory manager. The insurer has also turned to digitisation to improve its services.