By Adil Al Hasan
Copyright tempo
TEMPO.CO, Jakarta – The plan to merge 16 state-owned insurance companies (SOEs) is in its initial discussion phase. Danantara, the state-owned investment management body, intends to cluster these companies into three distinct entities.”At Danantara, one of the processes underway is the clustering of all companies under one umbrella. Currently, we have IFG (Indonesia Financial Group), but not all insurance companies fall under IFG,” said Reza Yamora Siregar, Danantara’s Managing Director and Chief Economist, during the Insurance Industry Dialogue at Hotel St. Regis, Jakarta, on Tuesday, September 30, 2025.Reza added that Danantara also plans to review the condition of each potential merger candidate, noting that the body will restructure the companies if necessary.Last June, the Chief Executive of the Financial Services Authority (OJK) for Insurance Supervision, Guarantees, and Pension Funds, Ogi Prastomiyono, affirmed that the regulatory institution is engaged in ongoing discussions regarding the plan with IFG, the parent company of state-owned financial and insurance firms.Separately, Dony Oskaria, Chief Operating Officer of Danantara, explained that the institution aims to consolidate business across both the logistics and insurance sectors. This move is designed to strengthen business capacity and enhance the competitiveness of state-owned firms.According to Dony, the current 16 state-owned insurers operate on small business scales and are therefore unable to compete effectively. “Jasa Raharja also has insurance, then Pertamina has Tugu Insurance, BRI has insurance, and BNI has insurance. But their size is not sufficient and they are not competitive,” Dony stated during the IKA Fikom Unpad Executive Breakfast Meeting, as cited by Antara on June 18, 2025.Danantara has already reviewed the business foundations of these companies and has begun the consolidation process. “We are consolidating our business,” he confirmed.Editor’s Choice: Indonesia’s KPPU Fines TikTok $1M+ for Late Reporting of Tokopedia AcquisitionClick here to get the latest news updates from Tempo on Google News
