Pertamina asked to involve local insurance brokers

The association of Indonesian insurance brokers has asked state owned oil and gas company Pertamina to involve local insurance companies in its insurance contracts, Bisnis Indonesia reported on Thursday.

The association's chairman Rubiyanto said that the state oil and gas company has never used the service of local brokers in obtaining insurance for its activities.

"The oil and company relies on its subsidiary PT Asuransi Tugu or goes to foreign insurance brokers in obtaining insurance services," he said.

He said that Pertamina as local company should also involve local brokers in its insurance contracts. "It is certainly not wise for a company like Pertamina to only involve foreign brokers in obtaining insurance services," he said.

The association's chairman also appealed to the Ministry of Finance to stream line the role of insurance agents in the country so that their business would not overlap with the insurance brokers.

He said the ministry should take a firm action against insurance agents which also operate as brokers. (*)