Yahoo Finance | Indonesia moves to unify state banks’ asset management units – report

Indonesia moves to unify state banks’ asset management units – report

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 Permedalan 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.

Read more: https://finance.yahoo.com/economy/policy/articles/indonesia-moves-unify-state-banks-113927732.html

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