IFG Transformation Streamlines 12 Entities
IQPlus, (23/7) - President Prabowo Subianto revealed that as of July 2026, the streamlining programme has cut around 250 state-owned enterprise (BUMN) entities and generated cost efficiencies of up to Rp50 trillion. In the insurance and guarantee sector, Indonesia Financial Group (IFG) has contributed through the consolidation of 12 entities as part of the BUMN ecosystem transformation.
On Wednesday (22/7), the Head of BP BUMN and concurrently COO of Danantara, Dony Oskaria, held a meeting with IFG’s board of directors to discuss accelerating the streamlining programme, the progress of the holding company’s transformation, and the strengthening of governance and efficiency of the BUMN insurance companies.
In his address, Dony emphasised that the success of the transformation should not only be measured by the simplification of corporate structures, but also by improvements in the quality of investment management. According to him, many of the problems that have occurred in the insurance industry stem from investment placements that are not balanced against liabilities, thereby increasing companies’ risk exposure.
“We are learning from and mapping out the problems that occurred previously. One of the most frequent is misinvestment. Many problems have arisen because of an imbalance between liabilities and investments. This is what exposed us to quite significant risks,” said Dony, quoted from BP BUMN’s official Instagram account.
He also warned of an imbalance in the investment portfolio that needs to be resolved promptly. Dony assessed that the growth of liabilities, unaccompanied by corresponding performance from investment assets—particularly in the property portfolio—could widen the companies’ financial gap if not addressed immediately.
“Now we are aware there is an imbalance in our portfolio. I am worried the gap will actually widen because liabilities keep rising, while there is a property portfolio that has yet to generate sufficient margin to cover those obligations. This must be resolved quickly,” Dony asserted.
Through the holding transformation and streamlining programme, IFG is directed to build a more disciplined investment management system, strengthen risk management, and ensure insurance product development is based on sound risk analysis. This step is expected to improve the sustainability of the BUMN insurance industry while preventing the recurrence of investment mistakes in the future.