Indonesia’s newly consolidated state-owned investment manager Danareksa Investment Management Indonesia is looking to increase its assets under management (AUM) to 192-200 trillion rupiah ($10.5-11 billion) in 2027. It had an AUM of 172.5 trillion rupiah ($9.5 billion) as of November 5, 2026.
Danareksa operates under Danantara Asset Management (DAM), a strategic operational and management entity under sovereign wealth fund Danantara Indonesia.
Danareksa was formed following the merger of four state-owned asset management companies—PT Mandiri Manajemen Investasi, BNI Asset Management, BRI Manajemen Investasi, and PNM Investment Management—on October 1.
The combined entity operates under the investment management licence of Mandiri Manajemen Investasi, the sole surviving entity in the merger.
Hardiyanto Pilia, director of finance and operations and acting president director of Danareksa Investment Management Indonesia, said the consolidation was intended to create a larger investment management platform serving institutional and retail investors.
“Hopefully, we can become the largest investment manager in Indonesia and provide solutions for all segments of society and institutions,” he said at a media event in Jakarta on Wednesday (November 11).
The company has more than 375 institutional investors and approximately one million retail investors, supported by 56 distribution partners comprising banks, securities firms and technology-based companies.
Its combined portfolio comprises 110 mutual funds, 117 discretionary fund management contracts, 12 limited participation mutual funds, five exchange-traded funds (ETFs), two asset-backed securities collective investment contracts and 10 housing savings fund collective investment contracts (KIK Tapera).
The company is led by Pilia, alongside Arief Budiman as director of marketing and products, Ari Adil as director of investments, and Ade Santoso Djajanegara as director of risk management and compliance. All four previously served as president directors of their respective investment management companies.
Expanding beyond consolidation
Danareksa said the merger was aimed at combining the four companies’ investment management capabilities, experience, and distribution networks rather than simply increasing business scale.
Arief Budiman said the combined businesses brought approximately 34 years of cumulative experience in the investment management industry.
“The added value is not simply about increasing the scale of the business. It is about combining capabilities and experience,” he said.
Danareksa is also seeking to expand its client base through its Singapore subsidiary, which will serve as a vehicle for clients seeking exposure to offshore investment products.
Danareksa said the merger would not affect existing investment portfolios or require changes to the underlying assets held by its investment products.
Ari Adil said the corporate action only changed the identity of the fund manager, while custodian banks would continue independently administering the funds and calculating their net asset values.
The merger also does not require the company to sell securities held in its portfolios, which will continue to be managed according to their existing investment mandates.
Meanwhile, Danareksa has no immediate plans to merge products with similar investment characteristics across the four former entities.
Budiman said the company would initially focus on renaming products under the Danareksa brand to simplify client onboarding.
“We do not yet have plans to merge products that are relatively similar. What we will do is change their names so that products previously managed under different investment management companies will carry the Danareksa name,” he said.
The company may subsequently review product structures, including share classes and client segmentation, to differentiate offerings for institutional and retail investors.
Any future merger or liquidation of products would take into account regulatory requirements, including minimum AUM and investor thresholds.
Competition in Indonesia’s investment management industry
The consolidation comes as Indonesia’s investment management industry remains fragmented, with approximately 92 licensed investment managers, serving over 32 million investors.
Ade Santoso Djajanegara said the industry’s 10 largest players accounted for around 70% of total AUM, but argued that the merger would not necessarily undermine competition with privately owned investment managers. “Each company has its own captive market. There is also a degree of specialisation across players,” he said.
Djajanegara also pointed to the relatively low penetration of investment products in Indonesia, noting that the country had approximately 32 million investors, compared with around 100 million in neighbouring countries. Danareksa believes this leaves room for the industry to expand its investor base, particularly among retail customers.
