JAKARTA-Harun Abidin through his business group Tata Artha Group has built a strategic partnership with Indian giant insurance incorporated Shriram Group by establishing a joint-venture insurance company in Indonesia named Bharat Re Insurance.“This joint venture has been approved by the Financial Services Authority (OJK) through a fit and proper test, “Harun told reporters in Jakarta, Thursday (28/12/2017).
In the joint venture, he added, is between Tata Artha Group and Shriram insurance, a Shriram subsidiary. Chairman of the Shriram Group, R Thyagarajan, sees Indonesia has a huge and potential market on insurance and financial services given the country’s large population and its economic growth.
Shriram Group is currently intensively expanding its business in Asia. Besides with Tata Artha, Shriram has also partnered with Indian IDFC Bank to build the largest financial business merger in India valued more than USD10 billion. “It is a big deal (Shriram and IDFC) and certainly would affect to our joint venture to be stronger financially, “ he said.
Shriram Group is one of India’s giant companies engaged in the areas of finance, investment, insurance, and health. Especially for Shriram Life Insurance Company, in 2016 it recorded a premium value of more than 1,000 crore or about USD150 million, an increase of 38% from the previous year.
“This year our company has achieved a significant growth in all business parameters compared to last year,” said Shriram Life Managing Director Manoj Kumar Jain.
In fact, Harun said, Tata Artha Group has established a partnership with Shriram Group since September 2016 when they agreed to establish a new insurance joint-venture based in Indonesia. The insurance company which will use a network basis offer competitive products compared to other insurance products. “In the future, it will also expand into multi-finance business,” he added.
Insurance market in Indonesia is growing every year following the increasing the country’s population and economic development. Tata Artha Group and Shriram Group see the potential and opportunity to develop their financial business in Indonesia. (*)