Jakarta. The Financial Services Authority (OJK) has officially dissolved two pension funds owned by state-run insurer Asuransi Jiwasraya, as part of the company’s ongoing liquidation process.

The disbanded entities are the Financial Institution Pension Fund (Dana Pensiun Lembaga Keuangan / DPLK) and the Employers’ Pension Fund (Dana Pensiun Pemberi Kerja / DPPK), OJK said in a statement on Thursday. Both were headquartered on Jalan H Juanda No. 34 in Gambir, Central Jakarta.

OJK’s Head of Insurance Licensing, I Wayan Wijana, said the decision was approved by the authority’s board of commissioners on August 4, following a request from Jiwasraya’s liquidation team.

“The decision to dissolve DPLK and DPPK is based on a request from the liquidation team of Asuransi Jiwasraya,” Wayan said.

OJK has appointed separate teams to oversee the liquidation of each pension fund.

Jiwasraya -- along with fellow state insurer Asabri -- has been at the center of high-profile corruption and mismanagement scandals that resulted in massive state losses.

In October 2020, the Jakarta Anti-Corruption Court handed life sentences to six defendants, including prominent stockbroker Benny Tjokrosaputro, Jiwasraya President Director Hendrisman Rahim, Finance Director Hary Prasetyo, and Investment and Finance Division Head Syahmirwan.

The court found the defendants guilty of steering Jiwasraya into unsound investments and profiting personally at the expense of state funds, causing losses of Rp 16.8 trillion ($1 billion). The verdict marked the first time in Indonesian legal history that multiple defendants in the same corruption case received life imprisonment.