Indonesia targets merger of 15 state insurers into three
Danantara aims to complete the consolidation by the end of 2026, while officials stress decision-making safeguards and stronger corporate governance.
BPI Danantara plans to combine 15 Indonesian state-owned insurers into three by the end of 2026, with separate specialisations in life, general and credit insurance. Dony Oskaria, head of state-owned enterprises and Danantara's chief operating officer, outlined the target in Jakarta on 2 October.
Dony said the consolidation would extend across state-owned insurance entities and would also cover sharia insurance. Ahead of the mergers, officials at Danantara Asset Management and Indonesia Financial Group (IFG) stressed the need for corporate decisions to be supported by adequate review and oversight.
In a statement on 13 October, Danantara Asset Management senior director of legal Inosentius Samsul said the Business Judgment Rule needed to be reflected in decision-making procedures, rather than understood only as a legal principle. He called for business and legal assessments, compliance with standard operating procedures, management of conflicts of interest, checks and balances, and complete records of decisions.
IFG director of human resources and legal Rizal Ariansyah said business transformation required both willingness to make decisions and discipline in governance and risk management. Decisions should have a rational basis, sufficient information and analysis, and a comprehensive assessment of risks, he said.
Rizal said IFG was continuing to align its businesses by optimising resources, strengthening business capacity and improving operational effectiveness and efficiency, including through consolidation and streamlining. IFG oversees insurance, guarantee and investment companies, with subsidiaries including Jasa Raharja, Jamkrindo, Askrindo, Jasindo and IFG Life.
