Accelerated Restructuring: SOE Investment Manager Consolidation to be Completed This Month
The State-Owned Enterprise Management Agency (BP BUMN) is accelerating the restructuring process of state-owned enterprises (SOEs) to improve business efficiency and financial health. Ongoing agendas include the consolidation of SOE investment managers into PT Danareksa and the streamlining of subsidiaries under PT Telkom Indonesia Tbk (TLKM).
Head of BP BUMN, Dony Oskaria, stated that the consolidation of four SOE investment managers into Danareksa is targeted for completion this month. The four companies involved are PT Mandiri Manajemen Investasi (owned by Bank Mandiri), PT BRI Manajemen Investlagi (under Bank Rakyat Indonesia), PT BNI Asset Management (under Bank Negara Indonesia), and PT PNM Investment Management (affiliated with Permodalan Nasional Madani).
“The budget for the investment manager consolidation will be finalised this month,” Dony said during a meeting at the Parliament Complex, Senayan, on Monday (8/6). Additionally, Dony noted that the separation process for PT Danareksa’s subsidiaries has been completed, and the push for investment manager consolidation will intensify. Meanwhile, restructuring at PT Telkom Indonesia Tbk (TLKM) and PT Pupuk Indonesia is ongoing as part of the government’s accelerated SOE transformation.
BP BUMN also plans to consolidate SOE insurance companies into a single insurance holding company, a plan targeted for completion in the fourth quarter of this year. The Financial Services Authority (OJK) has confirmed receipt of the consolidation plan from Danantara, which serves as the holding company for the SOE insurance and reinsurance sector. OJK Executive Head of Insurance, Guarantee, and Pension Funds, Ogi Prastomiyono, expressed support for the agenda, provided it adheres to regulations and prioritises policyholder interests, noting that the move will address fragmentation and efficiency challenges in the state insurance industry.
Following the restructuring, Danareksa will shift its focus back to its core function as an asset management company. Previously, Danareksa acted as a cross-sector SOE holding company, but its subsidiaries have now been moved to Danantara. This transformation is projected to make Danareksa the second-largest asset management company in Indonesia, with total assets under management expected to reach IDR 185 trillion following the integration of the four Himbara (State-Owned Banks) investment managers. The transformation involves spinning off non-core businesses, such as industrial estates, construction, and clearing services, to appropriate sectoral holdings.
Furthermore, BP BUMN is overseeing the streamlining of Telkom Group’s subsidiaries, aiming to reduce the number of entities from 67 to 19 by the end of 2026. Telkom is implementing strategic measures including mergers, divestments, liquidations, and business consolidations to strengthen its focus on digital business and telecommunications infrastructure. Priority programmes also include the consolidation of fibre optic businesses through FiberCo BUMN, and the development of data centres, TowerCo, and InfraCo. Dony assured that these consolidation and streamlining processes would not result in mass layoffs, as most steps involve merging entities where employees will be integrated into the new organisations.