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The Government’s witness Wicipto Setiadi giving a testimony virtually at the judicial review hearing of Law No. 40 of 2014 on Insurance, Thursday (5/11). Photo by Humas MK/Ifa.

JAKARTA, Public Relations of the Constitutional Court—The Constitutional Court (MK) held a material judicial review hearing of Law No. 40 of 2014 on Insurance on Thursday, November 5, 2020 in the Plenary Courtroom. The hearing had been scheduled to hear a witness for the president/Government. The case No. 32/PUU-XVIII/2020 was filed by the members representative body (BPA) of Asuransi Jiwa Bersama (AJB) Bumiputera 1912.

At the hearing led by Chief Justice Anwar Usman, Wicipto Setiadi stated that the Insurance bill had been discussed at length before proposed to the DPR (House of Representatives). He said the bill was proposed by the Government. Before it was forwarded to the House, the Law and Human Rights Ministry held meetings and preparation for it to be listed in the National Legislative Program (Prolegnas).

Also read: Members Representative Body of Mutual Life Insurer Bumiputera Challenges Provision on Insurance 

He said that the lengthy discussions include whether the Constitutional Court decision would be used as a basis for the law. Since the Constitutional Court decision was final and binding, it should be used as a basis. He said at the time the Law and Human Rights Ministry put emphasis on Article 7 of the old Insurance Law, which stipulates that joint ventures be regulated in a separate law. In 1992, he added, they hadn’t decided on whether to use the word “in” or “with.”

“After the passing of Law No. 10 of 2004, as amended by Law No. 12 of 2011, the words ‘in’ and ‘with’ started to be standardized. For a long time, we hold on to the notion that the word ‘with’ means it should be regulated in a special law,” Wicipto added.

Also read: Members Representative Body of Mutual Life Insurer Bumiputera Reinforces Legal Standing

He believed there was only one insurance business in the form of joint venture. “In the discussions, [the Law and Human Rights Ministry], the Finance Ministry, and other stakeholders said that there had only been one joint venture,” he said.

Also read: Govt: Regulation of Insurance Business Is Open Legal Policy 

Since there had only been one joint insurance venture, it would’ve been ineffective to regulate it in a separate law. “Therefore, based on the Insurance Law No. 40 of 2014, the current and only joint venture was acknowledged and it was agreed on that it would be further regulated by government regulations,” he stressed.

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Nurhasanah, Ibnu Hajar, Maryono, Achmad Jazidie, Habel Melkias Suwae, Gede Sri Darma, Septina Primawati, and Khoerul Huda are the members representative body (BPA) of mutual life insurer Asuransi Jiwa Bersama (AJB) Bumiputera 1912. They challenge Article 6 paragraph (3) of the Insurance Law that reads, "Further provisions regarding the joint venture legal entity as referred to in paragraph (2) shall be regulated in a Government Regulation."

Also read: Expert: Joint Insurance Ventures Lack Investment Due to No Provisions 

They believe they have suffered constitutional loss because the a quo article is against the substance of the Constitutional Court Decision No. 32/PUU-XI/2013 dated April 3, 2014, in which the Court ordered that the provision on joint insurance ventures shall be regulated in a separate law at the latest two years and six months after the ruling was pronounced. They believe the president and the House of Representatives (DPR) has induced a regression by amending Law No. 2 of 1992 on Insurance into Law No. 40 of 2014 on Insurance, especially the a quo article.

Writer: Utami Argawati
Editor: Nur R.
PR: Annisa Lestari
Translator: Yuniar Widiastuti (NL)

Translation uploaded on 11/09/2020 15:17 WIB

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian version, the Indonesian version will prevail.

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