PNM Deemed Unsuitable for Merger of Four State-Owned Asset Management Firms
Herry Gunawan, director of the NEXT Indonesia Center, stated that including PT Permodalan Nasional Madani (PNM) in the planned merger of four state-owned enterprise (BUMN) investment manager companies is inappropriate due to differences in public service missions and the risk of losing financing access for MSMEs. The merger involves four BUMN investment managers, with PT Mandiri Manajemen Investasi as the surviving entity. The consolidation is expected to increase capital, reduce operational duplication, and strengthen competitiveness. PNM focuses on micro, small, and cooperative financing, differing from the profit orientation of investment manager companies. The management of physical BUMN assets is retained by PT Perusahaan Pengelola Aset. Consolidation without layoffs could lead to operational inefficiency due to excess employees.
PNM is not suitable for the merger because its primary objective is to provide financing for micro, small, and cooperative enterprises that do not yet meet banking requirements, making it a public service. Meanwhile, the three BUMN investment manager companies operate with a primary focus on portfolio management and profit achievement, creating a fundamental difference in business orientation. If PNM is forced to join, it would have to adjust to higher risk management standards and profit targets, potentially shifting its social focus. This model difference could create internal conflicts and reduce the effectiveness of each function. Consequently, the goal of microeconomic empowerment could be eroded, diminishing the social added value of the merger.
The merger of the three investment managers owned by banks BNI, BRI, and Mandiri is expected to produce an entity with stronger capital, thereby opening wider expansion opportunities and increasing corporate resilience. Operational duplication previously run separately can be trimmed, so operational costs decrease and the investment process becomes more integrated. This consolidation is planned to result in the largest investment manager company in Indonesia, with Mandiri Manajemen Investasi as the surviving entity, while BNI Asset Management, BRI Manajemen Investasi, and PNM Investment Management will be merged into it. The integration of asset portfolios, improved governance, and enhanced investment capabilities are expected to attract more investors and add productive value to state assets. Thus, the merger not only increases scale but also strengthens the competitive position of BUMNs in the national investment management industry.
The government has stated that the BUMN consolidation will not be followed by layoffs, meaning the number of employees in the merged company is likely to remain high. Workforce continuity without organisational adjustment can lead to an excessive structure, reducing operational efficiency due to labour cost burdens disproportionate to productivity increases. Furthermore, the large amount of accumulated capital increases the potential for excessive investment if not accompanied by adequate risk oversight. Herry emphasised the importance of strengthening governance and risk management to avoid investment allocations outside the established risk profile. Otherwise, the merged company could face challenges in managing a broader portfolio while maintaining financial stability.
If PNM is forced to follow the profit-oriented standards applied by the merged investment manager company, micro customers, especially women entrepreneurs, risk losing the source of financing that has been accessible through PNM’s special services. The loss of this access could force them to switch to online loans with higher interest rates or experience difficulties in developing their businesses. The risk of losing this customer base not only reduces financial inclusion but could also diminish the contribution of MSMEs to the national economy. This impact underscores the importance of maintaining PNM’s special role in the microfinance ecosystem, regardless of broader consolidation efforts in the BUMN asset sector.