IFG Transformation Streamlines 12 Entities

Jakarta - BP BUMN, together with BPI Danantara, has carried out a streamlining programme that has reduced approximately 250 state-owned entities, generating cost efficiencies of up to Rp50 trillion by July 2026. Head of BP BUMN and COO of Danantara, Dony Oskaria, stated that Indonesia Financial Group (IFG) contributed to this effort through the consolidation of 12 entities as part of the transformation of the SOE ecosystem. He recently held a meeting with the IFG Board of Directors to discuss the acceleration of the streamlining programme, the progress of the holding company’s transformation, and the strengthening of governance and efficiency within state-owned insurance companies. In his directives, 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 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 said, as quoted from the official BP BUMN Instagram account on Thursday (23/7/2026). He also highlighted an imbalance in the investment portfolio that needs to be resolved promptly. 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 immediately. “We now realise there is an imbalance in our portfolio. I am concerned the gap will widen because liabilities continue to increase, while there is a property portfolio that has not yet generated sufficient margins to cover these obligations. This must be resolved quickly,” Dony stressed. 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 enhance the sustainability of the state-owned insurance industry while preventing the recurrence of past investment mistakes.