IFG Transformation Streamlines 12 Entities

President Prabowo Subianto has revealed that as of July 2026, the streamlining programme has cut approximately 250 state-owned entities and generated cost efficiencies reaching Rp50 trillion. In the insurance and guarantee sector, Indonesia Financial Group (IFG) has contributed through the simplification of 12 entities as part of the state-owned enterprise ecosystem transformation. On Wednesday (22/7), Head of BP BUMN and concurrently 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 company transformation, and the strengthening of governance and efficiency within state-owned insurance firms. In his directives, Dony emphasised that the success of the transformation is not only measured by the simplification of corporate structures but also by improvements in the quality of investment management. According to him, various problems that have occurred in the insurance industry stem from investment placements that are not balanced with liabilities, thereby increasing the company’s risk exposure. ‘We are learning and mapping the problems that occurred previously. One of the most frequent issues is misinvestment. Many problems have arisen because of an imbalance between liabilities and investments. This is what exposes us to considerable risk,’ Dony stated. He also highlighted an imbalance in the investment portfolio that needs to be resolved immediately. Dony assessed that the growth of liabilities not matched by the performance of investment assets, particularly in the property portfolio, could potentially widen the company’s financial gap if not addressed promptly. ‘We now realise there is an imbalance in our portfolio. I am concerned the gap will grow even larger because liabilities continue to increase, while there is a property portfolio that has yet to generate sufficient margins to cover these obligations. This must be resolved quickly,’ Dony stressed. Through the holding company 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 enhance the sustainability of the state-owned insurance industry while preventing the recurrence of investment mistakes in the future.