Indonesia’s sovereign wealth fund Danantara is moving ahead with a proposal to bring together the asset management businesses linked to several state-controlled lenders, reported Bloomberg.

The deal is pending regulatory clearances.

PT Danantara Asset Management, a unit of Danantara, entered agreements on 1 April to buy the investment management subsidiaries of PT Bank Mandiri, PT Bank Rakyat Indonesia, PT Bank Negara Indonesia and PT Permodalan Nasional Madani, stock exchange filings show.

The filings indicate the combined consideration is Rp2.7tn ($158.8m). The move is aimed at establishing “a champion with strong competitiveness”, the filing read.

The stated purpose is to form a single asset management group intended to compete in Indonesia and elsewhere in the region.

Danantara did not respond to requests for comment.

The sovereign wealth fund was set up last year by President Prabowo Subianto as part of efforts to streamline state-owned enterprises, recycle dividend income and draw foreign capital for projects. The fund has also provided funding to the country’s troubled national airline and a major steel producer.

In a separate industry development in the country, Manulife Wealth & Asset Management recently acquired PT Schroder Investment Management Indonesia (SIMI) through its Indonesian subsidiary PT Manulife Aset Manajemen Indonesia (MAMI).

MAMI and SIMI will initially continue to run as separate organisations, with existing structures kept in place while systems, operations, and teams are combined gradually under a phased plan.

"Indonesia moves to unify state banks’ asset management units – report" was originally created and published by Private Banker International, a GlobalData owned brand.

 

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