Indonesia’s sovereign wealth fund Danantara Indonesia has completed the merger of four state-owned asset management companies into a single entity, according to its announcement on Tuesday.
The merger was approved at a shareholders’ meeting, chaired by Danantara head Rosan Roeslani, chief operating officer Dony Oskaria, and chief investment officer Pandu Sjahrir.
The transaction combines the investment management units of Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia, and Permodalan Nasional Madani, with Mandiri Investasi serving as the surviving entity.
Following the merger, the combined company will become Indonesia’s largest asset manager, with Danantara saying the move is intended to integrate state-owned investment portfolios, strengthen governance, and create a more efficient platform for managing government assets.
“The integration is expected to optimise the value of state assets, improve Indonesia’s attractiveness to investors, and generate greater economic value,” Danantara said.
The merger formally concludes a transaction that began in April when Danantara Asset Management agreed to acquire controlling stakes in the four fund managers for a combined 2.7 trillion rupiah (about $159 million), subject to regulatory approvals.
The acquisitions covered PT Mandiri Manajemen Investasi from Bank Mandiri, BRI Manajemen Investasi from Bank Rakyat Indonesia, BNI Asset Management from Bank Negara Indonesia, and PNM Investment Management from state-owned financing company Permodalan Nasional Madani.
DealStreetAsia previously reported that the consolidation would place around $8 billion of assets under management within a single state-owned investment platform, making it one of the country’s largest fund managers.
The asset management merger forms part of Danantara’s wider restructuring agenda since its establishment as Indonesia’s sovereign wealth fund. The institution has been consolidating overlapping businesses across the state-owned enterprise sector to simplify ownership structures, improve operational efficiency, and strengthen corporate governance.
The asset management merger is part of Danantara’s wider push to simplify Indonesia’s sprawling state-owned enterprise landscape. The sovereign wealth fund has said it aims to reduce the number of SOEs and their subsidiaries from 1,077 entities to around 200 by the end of the year through mergers, consolidations, and the elimination of overlapping businesses.
Oskaria has said more than half of existing SOE entities are loss-making, with cumulative losses reaching about 20 trillion rupiah, while streamlining the corporate structure could generate annual savings of as much as 50 trillion rupiah by eliminating inefficient intra-group transactions, as cited from local media.
