Published on August 5, 2025
Authors: Isna Rifka Sri Rahayu, Teuku Muhammad Valdy Arief
JAKARTA, KOMPAS.com – The Financial Services Authority (OJK) has not yet received an official application from the Daya Anagata Nusantara Investment Management Agency (BPI Danantara) for the consolidation of state-owned insurance and reinsurance companies.
OJK’s Head of Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono, stated that until official documents are received from BPI Danantara, the OJK cannot process the consolidation.
This consolidation will involve three companies: PT Reasuransi Indonesia Utama (Persero) or Indonesia Re, PT Reasuransi Nasional Indonesia or NasRe, and PT Tugu Reasuransi Indonesia or TuguRe.
“So, regarding the plan to merge three government-owned reinsurance companies, we are currently still awaiting official confirmation of this plan. We have not yet received official documents from the government or Danantara,” he said during a press conference during the OJK Monthly Board of Commissioners Meeting on Monday (August 4, 2025).
Nevertheless, the OJK welcomes the planned consolidation of state-owned insurance and reinsurance companies as long as it is implemented carefully, in accordance with applicable regulations, and with due regard for governance and risk management.
“Managing risk requires adequate capital capacity. One way to increase capacity is by consolidating insurance companies under the same control,” he said.
He continued, explaining that the Financial Services Authority (OJK) has issued three OJK Regulations (POJK) to facilitate the future consolidation process: POJK 11 of 2023, POJK 23 of 2023, and POJK 36 of 2024.
In more detail, Ogi explained that the consolidation regulations in POJK 23 of 2023 relate to insurance company licensing, which regulates the increase in insurance and reinsurance capital, starting in 2026 (phase I) and 2028 (phase II).
POJK 11 of 2023 also covers the obligation to spin off sharia business units by December 31, 2026.
Furthermore, POJK 36 of 2024, concerning the organization of insurance companies, regulates the purification of underwriting business units within insurance companies. Insurance companies are required to establish underwriting business units by 2025.
“So, based on these three POJK, insurance companies with the same controller are encouraged to consolidate. Consolidation for insurance and reinsurance is expected to strengthen the industry structure, increase operational efficiency, and strengthen the company’s capital and solvency,” he said.
The proposal for the merger of the state-owned insurance industry was previously submitted by the Chief Operating Officer (COO) of Danantara Indonesia, Dony Oskaria.
Dony assessed that the current state-owned insurance sector, which consists of approximately 16 state-owned companies, is small and insufficiently competitive. To realize the consolidation of state-owned insurance companies, BPI Danantara has already conducted an evaluation of the business fundamentals of each company involved. The process will then proceed to the second stage of business consolidation, either through streamlining or mergers of several state-owned insurance entities.