Economist: SOE MI Merger Entity to Become 'Anchor' for Mutual Fund-Bond Market

The entity resulting from the merger of four state-owned enterprise (SOE) investment managers can serve as an anchor for the mutual fund, bond, and medium-to-long-term asset markets in the domestic financial market going forward, according to an economist. Rully Arya Wisnubroto, Chief Economist and Head of Research at Mirae Asset Sekuritas, assessed that the merger is neutral to positive for the domestic financial market in the medium term, as it has the potential to enhance efficiency, research capabilities, and the competitiveness of SOE investment managers. “With the new entity managing approximately Rp170 trillion in assets under management (AUM), the market will see the emergence of a large institutional player that can become a domestic anchor for mutual fund products, the bond market, and medium-to-long-term asset placement,” Rully stated in Jakarta on Monday. In the short term, however, Rully explained that the merger’s impact will be more mixed, given the need for operational integration, product alignment, and possible portfolio rebalancing. He noted that market participants or investors are likely to react cautiously positively but will remain selective, and the market generally will not view this as a systemic risk. “The opportunities clearly lie in economies of scale, cost efficiency, strengthened research, and stronger distribution capabilities,” Rully said. Previously, Danantara Indonesia, through PT Danantara Asset Management (DAM), officially signed a Share Purchase Agreement (SPA) for the shares of PT Mandiri Manajemen Investasi (MMI), PT BRI Manajemen Investasi (BRI MI), PT BNI Asset Management (BNI AM), and PT PNM Investment Management (PNM IM). The signing marked the transfer of control of the four SOE investment managers to DAM, which collectively recorded AUM of more than Rp170 trillion as of June 2026. Danantara Indonesia Chief Operating Officer Dony Oskaria stated that the acquisition of control is not merely a share purchase transaction, but a major step to build new strength in the national investment management industry. “Within the next month, these four asset management firms will merge into the largest asset management company in Indonesia. This process is part of the streamlining being carried out by Danantara Indonesia,” Dony said.