TUGU Speaks Out on State-Owned Insurance Consolidation, Here's the Update

Jakarta, CNBC Indonesia - State-owned insurance issuer PT Asuransi Tugu Pratama Indonesia Tbk (TUGU) has spoken out regarding the progress of the consolidation or streamlining plan for insurance companies within the Danantara Investment Management Agency (BPI Danantara). In its disclosure to the Indonesia Stock Exchange (BEI), TUGU management stated that on 19 June 2026, the company became one of the parties involved in preparing a study related to the insurance consolidation plan in the Danantara ecosystem. This involvement is part of an exploratory process currently being undertaken by the company. TUGU explained that the study relates to the streamlining or consolidation plan for insurance companies within the Danantara ecosystem. However, the company has not yet disclosed further details regarding the form or scheme of the consolidation being studied. ‘There is a potential cost for the implementation of the study’s preparation,’ as quoted from the BEI disclosure on Wednesday (24/6/2026). It is known that the consolidation of State-Owned Enterprises (SOEs) in the insurance sector is targeted for completion this year. The technical merger discussions are expected to be finalised by July 2026, with the merger commencing in September 2026. To discuss the progress of this process, the Head of BP BUMN and COO of Danantara Indonesia, Dony Oskaria, held a meeting with the President Director of IFG, Hexana Tri Sasongko, on Wednesday (17/6/2026). The meeting focused on aspects of business integration, strengthening governance, capital optimisation, and developing synergies between entities that will become part of the merged company’s structure. Various strategic steps necessary to ensure the integration process runs effectively and provides long-term added value were also a primary concern. ‘This consolidation is an important step to strengthen the SOE insurance industry to be healthier, more efficient, and competitive,’ said Dony, quoted from an official statement on Wednesday (17/6/2026). The ongoing transformation is expected to produce a stronger business scale, increase operational efficiency, strengthen underwriting and investment capacity, and expand the company’s ability to provide protection to the public and businesses. Through strengthening the structure of the SOE insurance industry, BP BUMN and Danantara hope the insurance sector can play an increasingly strategic role in supporting financial system stability, increasing national insurance penetration, and supporting Indonesia’s economic financing and development. In line with this, the Chairman of the Indonesian General Insurance Association (AAUI), Budi Herawan, stated that the discussion process for the SOE insurance consolidation is ongoing between institutions and consultants. This process is expected to be completed by 31 July 2026. ‘The merger process is set for September 2026, so by January 2027 it must be completed. However, it is still unclear who will become the shell,’ Budi said during an AAUI press conference in Jakarta, separately. Furthermore, the General Insurance Association has provided input to Danantara so that the consolidation process does not impact the performance of general insurance. This is because, in addition to the consolidation agenda, insurers are also faced with the obligation to spin off sharia business units by the end of 2026. ‘There are several SOE insurers that are not in good shape; whether they will receive State Capital Injection (PMN) is still unknown, and it is unclear if this will happen after the merger. Portfolio transfers are not easy, and the run-off is expected to proceed smoothly,’ Budi said.