Danantara Targets State-Owned Insurance Merger to Begin September 2026
The consolidation of State-Owned Enterprises (SOEs) in the insurance sector is targeted for completion within this year. The technical discussion process for the merger is expected to conclude by July 2026, with the actual merger commencing in September 2026.
To discuss the progress of this process, the Head of the SOE Agency and COO of Danantara Indonesia, Dony Oskaria, held a meeting with the President Director of IFG, Hexana Tri Sasongko, on Wednesday (17/06/2026). The discussions focused on business integration aspects, strengthening governance, capital optimisation, and developing synergies between the entities that will form part of the post-merger corporate structure.
Various strategic steps required to ensure the integration process runs effectively and provides long-term added value were also a primary focus. “This consolidation is an important step to strengthen the SOE insurance industry so that it becomes healthier, more efficient, and more competitive,” said Dony, as quoted from an official statement on Wednesday (17/06/2026).
The ongoing transformation is expected to produce a stronger business scale, increase operational efficiency, strengthen underwriting and investment capacity, and expand the companies’ ability to provide protection to the public and the business world.
Through the strengthening of the SOE insurance industry structure, the SOE Agency and Danantara hope that the insurance sector can play an increasingly strategic role in supporting financial system stability, increasing national insurance penetration, and supporting the financing and economic development of Indonesia.
In line with this, the Chairman of the Indonesian General Insurance Association (AAUI), Budi Herawan, stated that the consolidation discussion process for SOE insurance is currently underway between institutions and consultants. It is expected that this process will be completed by 31 July 2026.
“The merger process will take place in September 2026, so by January 2027, it should be finalised. However, it is not yet clear which entity will serve as the holding company,” Budi said during an AAUI press conference in Jakarta.
Furthermore, the General Insurance Association has provided input to Danantara to ensure that the consolidation process does not impact the performance of general insurance. This is because, in addition to the consolidation agenda, insurance companies are also faced with the obligation to spin off Sharia business units by the end of 2026.
“There are several SOE insurance companies that are not performing well; it remains unknown whether they will receive State Capital Injection (PMN) or if this will be done after the merger. Additionally, the transfer of portfolios is not easy, and we hope the run-off process proceeds smoothly,” said Budi.
For information, the COO of BPI Danantara, Dony Oskaria, stated that this year, the number of SOE subsidiaries and sub-subsidiaries will be reduced from 1,043 entities to approximately 300 entities. He emphasised that all SOEs will be affected by this restructuring, including the insurance sector.
“Insurance will be reduced from 15 entities to 3; we will have one life insurance, one general insurance, and one credit insurance,” Dony explained during the CNBC Indonesia Economic Outlook 2026 event at the Kempinski Hotel, Jakarta.