OJK Awaits Plans for State-Owned Insurance Consolidation by Danantara
The Financial Services Authority (Ojek OJK) has stated that it will closely monitor the planned consolidation of state-owned enterprise (SOE) insurance companies currently being formulated by the Daya Anagata Nusantara Investment Management Agency (Danantara) in conjunction with the Indonesia Financial Group (IFG).
Ogi Prastomiyono, the OJK Executive Head of Insurance, Guarantee, and Pension Fund Supervision (PPDP), revealed that, in principle, the regulator will oversee the direction and scheme of the consolidation being prepared by the government for several SOE insurance companies, including those currently outside the IFG umbrella.
“As the regulator, we will monitor what kind of consolidation is taking place. Clearly, companies of a similar type will be merged into one,” he stated following the BIG Financial Insight 2026 event in Jakarta on Tuesday (2/6/2026).
According to Ogi, the scheme under discussion involves merging companies based on their business lines. For the general insurance sector, several companies with similar business activities could potentially be consolidated into a single entity. The same applies to life insurance and Sharia insurance companies.
“General insurance will be merged into one, whereas previously there were several. Life insurance will also be merged. Sharia insurance will also see several entities consolidated into general Sharia insurance and life Sharia insurance,” he said.
In addition to insurance, the consolidation is also expected to cover the guarantee sector. However, social insurance companies such as Jasa Raharja are expected to be maintained according to their current functions and mandates.
Meanwhile, the reinsurance sector is projected to undergo more significant structural changes. Ogi stated that there is a possibility that state-owned reinsurance companies will be consolidated outside the IFG group and placed directly under the management of Danantara.
“Reinsurance will likely be removed from the IFG group,” OMA said.
He explained that there are currently several state-owned reinsurance companies and SOE subsidiaries, such as Indonesia Re, Reasuransi Nasional Indonesia (Nasre), and Tugu Re, which ultimately share the same controlling shareholder: the government through Danantara.
“It is not a holding company, but rather a consolidation of reinsurance—SOE reinsurance or subsidiaries of SOEs. There is Nasre within the IFG group, then there is Indonesia Re and Tugu Re; their ultimate shareholder is the same, which is Danantara. They will simply receive them,” Ogi noted.
“We are waiting; reinsurance should ideally be unified,” he added.