IFG Streamlines 12 Entities to Strengthen Governance and Prevent Investment Errors

Jakarta, CNBC Indonesia - President Prabowo Subianto has stated that the streamlining programme has cut approximately 250 state-owned enterprise (BUMN) entities, yielding cost efficiencies of up to Rp50 trillion by July 2026. In the insurance and guarantee sector, Indonesia Financial Group (IFG) has contributed by simplifying 12 entities as part of the BUMN ecosystem transformation. BP BUMN Chief and COO of Danantara, Dony Oskaria, held a meeting with the IFG board of directors to discuss the acceleration of the streamlining programme, the progress of the holding transformation, and the strengthening of governance and efficiency within state-owned insurance companies. During the meeting, Dony emphasised that the success of the transformation is not solely measured by the simplification of corporate structures, but also by improvements in the quality of investment management. He noted that many past problems in the insurance industry stemmed from an imbalance between investment placements and liabilities, which increased the company’s risk exposure. ‘We are learning and mapping out the problems that occurred previously. One of the most common issues is misinvestment. Many problems arose because of an imbalance between liabilities and investments. This is what exposed us to considerable risk,’ Dony said in a written statement on Thursday (23/7/2026). He also highlighted an existing portfolio imbalance that needs to be resolved urgently, warning that the growth of liabilities not matched by asset performance, particularly in the property portfolio, could widen the company’s financial gap if not addressed promptly. ‘Now we realise there is an imbalance in our portfolio. I am concerned the gap will widen further because liabilities continue to increase, while there is a property portfolio that has not generated sufficient margins to cover these obligations. This must be resolved quickly,’ he explained. Consequently, IFG has been directed to build a more disciplined investment management system, strengthen risk management, and ensure that insurance product development is based on sound risk analysis. Through the holding transformation and streamlining programme, IFG is expected to enhance the sustainability of the state-owned insurance industry while preventing the recurrence of investment errors in the future.