BP BUMN Reveals IFG Transformation, 12 Entities Cut
JAKARTA – Strengthening investment governance has become the focus of Indonesia Financial Group’s (IFG) transformation amid the programme to simplify the structure of state-owned enterprises (SOEs). As of July 2026, IFG has cut 12 entities as part of the streamlining programme in the insurance and guarantee sectors.
Dony Oskaria, head of the SOE Ministry and Chief Operating Officer (COO) of Danantara, said transformation should not be measured solely by the simplification of corporate structures, but also by the ability to improve the quality of investment management.
“The success of transformation is not only measured by the simplification of corporate structure, but also by improvements in the quality of investment management,” Dony said when summoning IFG’s board of directors to the SOE Ministry office in Jakarta on Wednesday (22 July 2026).
According to Dony, the meeting discussed accelerating the streamlining programme, progress of the holding company’s transformation, and strengthening governance and efficiency at the state-owned insurance companies.
Dony said the various problems that have long beset the insurance industry stem from investment placements that are not balanced against companies’ liabilities, thereby increasing risk exposure.
“We have learned from and mapped out the problems that occurred previously. One of the most frequent is misinvestment. Many problems have arisen because there was an imbalance between liabilities and investments. This is what exposed us to considerable risk,” Dony explained.
He also highlighted imbalances in the investment portfolio that need to be addressed promptly. According to him, growth in obligations that is not matched by investment asset performance, particularly in the property portfolio, risks widening the companies’ financial gap.
“We are now aware of an imbalance in our portfolio. I am worried the gap will actually widen because liabilities keep increasing, while there is a property portfolio that has yet to generate sufficient margin to cover those obligations. This must be resolved quickly,” Dony asserted.
Through the holding company’s transformation and the streamlining programme, IFG is being directed to build a more disciplined investment management system, strengthen risk management, and ensure insurance product development is based on sound risk analysis. These steps are expected to improve the sustainability of the state-owned insurance industry whilst preventing repeated investment mistakes in the future.
Previously, President Prabowo Subianto revealed that the streamlining programme up to July 2026 has cut around 250 SOE entities and generated cost efficiencies of up to Rp50 trillion.