Indonesia's state insurers to consolidate by 2026

Indonesia's state-owned insurance sector is set for a significant overhaul, with BP BUMN and Danantara Indonesia targeting the consolidation of insurance companies under the Indonesia Financial Group (IFG) by 2026.

This strategic move is viewed as essential for fostering a more robust, efficient, and competitive insurance industry within the state-owned enterprise framework. Dony Oskaria, Head of BP BUMN and COO of Danantara Indonesia, emphasized the importance of this consolidation in strengthening the industry's foundation. "Consolidation is an important step to strengthen the state-owned insurance industry to be healthier, more efficient, and competitive," Oskaria stated.

A meeting between Oskaria and Hexana Tri Sasongko, President Director of IFG, on June 17, 2026, focused on the integration process. Discussions centered on four primary aspects: business integration, enhanced governance, capital optimization, and the development of inter-entity synergies. These integrated entities will form the structure of the consolidated company.

The consolidation aims to drive business scale and improve risk selection and investment capabilities. This will enable the companies to offer broader protection to the public and businesses. Furthermore, the transformation is expected to boost operational efficiency, thereby increasing competitiveness in the national insurance market.

Ultimately, BP BUMN and Danantara Indonesia hope this consolidation will position the state-owned insurance sector to play a more significant role in supporting financial system stability, increasing national insurance penetration, and contributing to Indonesia's economic development. The goal is to create an integrated ecosystem that can dynamically respond to evolving market needs.