Allianz Life Indonesia, a subsidiary of German insurer Allianz, will likely be required to sell at least 20% of its shares to Indonesian investors.
Yesterday Allianz Life Indonesia chief financial officer Meylindawati Tjoa told reporters that Allianz would comply with the local rules currently being drafted by the Indonesian government, reports the Jakarta Post. These rules will limit foreign ownership of Indonesian insurance companies to 80%.
Allianz group currently owns 99.7% of the company's shares.
Tjoa said Allianz Indonesia will comply with any rules that come into force.
Lobby group Insurance Europe has previously complained about protectionism in Indonesia. Following the merger of four state-owned reinsurers into Indonesia Re last year the Indonesian regulator announced that only local reinsurance cessions would be allowed.
Companies:Allianz
