Indonesia

American International Group has been operating in Indonesia for almost a quarter of a century and the company's commitment to the country is clearly on the long-term. This was further cemented in 1999 when AIG joined forces with the Lippo Group's insurance branch, LippoLife, to become one of Indonesia's most dominant players in the insurance sector - AIG Lippo

This joint venture has proved to be a significant move. Before this, LippoLife had 30 percent of the market and was the largest writer of new businesses in 1999. Today, AIG Lippo's services and products can be found throughout Indonesia in all 300 branches of Lippo Bank, with plans to expand in 2003 through BNI, Bank Permata, and ABN AMRO. In addition, the company also provides complete access to its products throughout the country in every post office in the archipelago. Company President Director, Robert Bush boasts of AIG Lippo's pioneering approach toward its customers: "We are not in the rural market place yet because it has only been two years, but we plan on expanding all over Indonesia through the 4,500 post offices across the country, many of which are in villages."
AIG Lippo President Director and CEO Robert W. Bush

Bush emphasizes the social aspects on this policy. "As this untapped market is relatively low income," he points out, "it is not exactly what other joint venture companies would talk about or want to go after, but we think there is a real critical need for our services. Indonesia is an under-insured market with less than four percent of its population covered. Our goal is to ensure millions, perhaps tens of millions of Indonesians, within the next 10 years. That is our driving force."

AIG Lippo has also responded to another growing demographic factor in the country. Improved access to family planning, political pressure to reduce family sizes, and increased urbanization are all factors that have resulted in an aging population in Indonesia. There are fewer young people willing and able to support the older generation. As a result, the company's fastest growing line of business is now its pension services and products division.

Dana Pensiun Lembaga Keuangan (DPLK) AIG Lippo Group Retirement Services provides quality pension programs designed to meet the needs of the Indonesian and multinational corporations. Indeed, armed with Triple-A ratings and extensive international experience, DPLK AIG Lippo is setting new standards in customer service, investment options, research, and cutting edge technology. The company was the first pension provider in Indonesia to receive ISO 9001 certification and it continues to create pension plan programs that exceed the expectations of clients companies and their employees.

"Our focus is; What we can do for the citizens of the country?" says Bush. "Last year we were the largest purchaser in Indonesia of government bonds and we are investing more money into Indonesia than any other company. We can make a difference in Indonesia, and to the lives of Indonesian families."

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