BP BUMN Reveals IFG Transformation, 12 Entities Cut

Strengthening investment governance is the focus of Indonesia Financial Group’s (IFG) transformation amid the state-owned enterprise (BUMN) simplification programme. As of July 2026, IFG has cut 12 entities as part of the streamlining programme in the insurance and guarantee sector. Head of BP BUMN and Chief Operating Officer of Danantara, Dony Oskaria, said that transformation is not only measured by simplifying the corporate structure but also by the ability to improve the quality of investment management. “The success of the transformation is not only measured by the simplification of the corporate structure but also by improving the quality of investment management,” Dony said during a meeting with the IFG board of directors at the BP BUMN office in Jakarta on Wednesday (22/7/2026). According to Dony, the meeting discussed accelerating the streamlining programme, the progress of the holding company’s transformation, and strengthening the governance and efficiency of state-owned insurance companies. Dony said that various problems that have occurred in the insurance industry stem from investment placements that are not balanced with the company’s liabilities, thereby increasing risk exposure. “We are learning and mapping the problems that occurred previously. One of the most frequent issues is misinvestment. Many problems have arisen because of an imbalance between liabilities and investments. This is what causes us to be exposed to considerable risk,” Dony explained. He also highlighted the imbalance in the investment portfolio that needs to be addressed immediately. According to him, the growth of liabilities that is not matched by the performance of investment assets, particularly in the property portfolio, has the potential to widen the company’s financial gap. “Now we realise there is an imbalance in our portfolio. I am worried the gap will widen because liabilities continue to increase, while there is a property portfolio that has not yet generated sufficient margins to cover these obligations. This must be resolved quickly,” Dony stressed. Through the holding company transformation and the streamlining programme, IFG is directed to build a more disciplined investment management system, strengthen risk management, and ensure that insurance product development is carried out based on sound risk analysis. These steps are expected to improve the sustainability of the state-owned insurance industry while preventing the recurrence of investment mistakes in the future. Previously, President Prabowo Subianto revealed that the streamlining programme up to July 2026 had cut around 250 BUMN entities and generated cost efficiencies reaching Rp50 trillion.