IFG Announces Strategic Restructuring of Subsidiaries

Consolidation into Seven Clusters

Indonesia Financial Group (IFG) has initiated a comprehensive restructuring program aimed at streamlining its subsidiaries and affiliates into seven distinct business clusters. This strategic move is designed to optimize operational efficiency and create larger, more competitive entities within the financial services sector.

Key Considerations and Implementation

The restructuring initiative is based on seven key considerations, including specific directives to subsidiaries in general insurance and guarantee businesses to conduct thorough business optimization studies. The process will involve detailed analysis across multiple dimensions including business, finance, taxation, legal, risk, and compliance. IFG will prioritize prudence and good corporate governance throughout the implementation process.

Business Impact and Objectives

The consolidation aims to create larger, stronger, and more competitive entities in the insurance and guarantee sectors. Danantara Asset Management (DAM) has provided specific guidelines for the consolidation process, emphasizing the need for streamlined operations and enhanced business focus. The restructuring is expected to have a positive impact on the overall financial performance and market position of IFG's subsidiaries.

Implementation Roadmap

The restructuring process will be preceded by comprehensive studies including business analysis, financial and tax assessment, legal review, risk evaluation, and development of a detailed implementation roadmap. IFG has committed to maintaining regulatory compliance and good corporate governance practices throughout the restructuring process.