OJK Reviews Danantara's Plan to Consolidate 16 State-Owned Insurers

TEMPO.CO, Jakarta - The Financial Services Authority (OJK) responds to the Danantara Investment Management Agency's plan to merge 16 state-owned insurance companies into three entities. This consolidation aims to streamline the structure and enhance the competitiveness of the state-owned insurance sector.

OJK's Executive Head of Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono, stated that the institution is still in discussions with Indonesia Financial Group (IFG), the financial and insurance state-owned enterprise (SOE) holding. "We are still talking with IFG," Ogi said at the Parliament Complex, Senayan, on Monday, June 30, 2025.

Danantara's Chief Operating Officer, Dony Oskaria, mentioned that the company aims to consolidate SOE businesses in the logistics and insurance sectors. This step is intended to strengthen the business capacity and enhance the competitiveness of the state-owned enterprises.

According to Dony, the 16 state-owned insurance companies currently have small-scale operations and cannot compete. "Jasa Raharja also has insurance, then Pertamina has Tugu Insurance, BRI has insurance, and BNI has insurance. But their size is insufficient, they are not competitive," said Dony at the IKA Fikom Unpad Executive Breakfast Meeting at Hutan Kota by Plataran, Jakarta, as quoted from Antara, June 18, 2025.

Danantara has reviewed the business foundation of SOE companies and started implementing consolidation. "We are consolidating businesses," he said.

Hasinah Jusuf, Head of the Legal Department of the Indonesian Life Insurance Association (AAJI), assessed that this merger will not impact private insurance companies. "As I see it, it doesn't impact private insurance companies at all, because the players are different," she said after delivering a presentation at the AAJI Media Gathering in Bogor, on Wednesday, June 28, 2025.

Hasinah, also the Legal & Compliance Director of Allianz Life Indonesia, explained that private insurance companies mainly serve individual policies. On the contrary, state-owned insurance companies are more dominant in group policies. "So, I don't see the impact of the state-owned insurance consolidation as significant for individuals, who are the main market for private insurance," she said.

Anastasya Lavenia contributed to the writing of this article

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