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View all search resultsDanantara to pare back SOEs in insurance, logistics sectors
The state asset fund, which also acts as the holding body for SOEs, plans to consolidate the logistics sector from 18 firms into a single major player and to merge 16 state-owned insurers into just three entities.
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A sign for state asset fund Danantara Indonesia is seen in front of its headquarters in Jakarta on Feb. 28, 2025. (Reuters/Willy Kurniawan) (Reuters/Willy Kurniawan)
D
anantara is gearing up to slash the number of state-owned enterprises (SOEs) in the logistics and insurance sectors as part of an ongoing consolidation push, a top executive revealed on Wednesday.
The state asset fund, which also acts as a superholding for SOEs in the country, plans to consolidate the logistics sector from 18 firms into a single major player and merge 16 state-owned insurers into just three entities.
Danantara’s chief operating officer (COO) Dony Oskaria noted that many SOEs run their own logistics units, such as PT Angkasa Pura Logistik, PT Pos Logistik Indonesia, PT Kereta Api Logistik, PT Pelindo Solusi Logistik and PT Semen Indonesia Logistik.
Most of these companies only cover the middle and last mile, while some offer end-to-end services but lack competitiveness in the market.
“These logistics firms will be merged into one sizable, competitive company that can truly deliver value for Danantara,” Dony told reporters, as quoted by Antara.
A similar situation exists in the insurance sector too, according to Dony, where most SOEs are too small to compete with private-sector players. Ultimately, he plans to consolidate them into just three firms covering life, general and credit insurance.
“There are PT Asuransi Kerugian Jasa Raharja, PT BRI Asuransi Indonesia, PT BNI Life Insurance and even Pertamina with Tugu Insurance. But their size is not big enough, not competitive,” he added.
