Danantara advances asset manager merger with 2.7 trillion rupiah deal
Indonesia’s sovereign wealth fund seeks to create ‘a champion with strong competitiveness’
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[JAKARTA] Indonesia’s sovereign wealth fund is advancing a plan to combine the asset management units of state-owned lenders to boost their regional competitiveness.
Danantara unit Danantara Asset Management signed deals on Apr 1 to acquire the investment management subsidiaries of Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia and Permodalan Nasional Madani, subject to regulatory approvals, according to stock exchange filings published late on Thursday (Apr 2).
The wealth fund will acquire stakes for a total of 2.7 trillion rupiah (S$204 million), as it seeks to create “a champion with strong competitiveness”, according to the filings.
The filings confirm an earlier Bloomberg report that Danantara planned to combine the asset management firms it owns, aiming to build a larger player to compete locally and across the region, according to people familiar with the matter.
Danantara representatives did not respond to requests for comment over the weekend.
President Prabowo Subianto established Danantara last year in a bid to improve the efficiency of Indonesia’s powerful state-owned enterprises, reinvest the dividends and attract foreign capital into high-impact projects in South-east Asia’s largest economy.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
It has injected capital into the nation’s distressed flag carrier and leading steelmaker. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
