Danantara Prepares to Consolidate 15 State-Owned Insurance Companies into 3 Main Entities

The Investment Management Agency (BPI) Danantara is set to merge 15 state-owned insurance companies into just three entities, each possessing its own specific specialisation.

The Indonesian Life Insurance Association (AAJI) views this move as a positive step towards strengthening the national insurance industry. Handojo G. Kusuma, AAJI’s Head of Inter-Institutional, Regulatory, and Domestic and International Stakeholder Cooperation, stated that consolidation fundamentally provides a beneficial impact on the industry.

“I believe it is better to view them as a single, stronger company. The crucial aspect is how the consolidation process is conducted, ensuring that the interests of each company’s customers are prioritised,” Handojo remarked during an AAJI press conference. He emphasised that the process must be handled with care to ensure that the merger proceeds smoothly without disrupting services to policyholders.

This momentum for consolidation is also expected to encourage industry players to increase capital capacity and competitiveness in line with the target of strengthening the industry through 2028. He noted that the process is currently being explored by Danantara.

According to Dony Oskaria, COO of BPI Danantara, the number of state-owned enterprise (SOE) subsidiaries and sub-subsidiaries will be reduced from 1,043 entities to approximately 300 entities this year. He confirmed that all SOEs will be affected by this restructuring, including the insurance sector.

“The 15 insurance companies will become three; we will have one life insurance, one general insurance, and one credit insurance entity,” Dony explained during the CNBC Indonesia Economic Outlook 2026 event in Jakarta.