Jakarta. Sovereign wealth fund Danantara Indonesia has taken control of four state-owned asset management companies as part of a sweeping consolidation aimed at creating one of the country's largest investment managers with more than Rp 170 trillion ($10 billion) in assets under management.

Danantara Asset Management (DAM), a unit of Danantara Indonesia, signed a share purchase agreement on July 22 to acquire control of Mandiri Manajemen Investasi, BRI Manajemen Investasi, BNI Asset Management and PNM Investment Management.

The transaction is part of Danantara's broader effort to streamline state-owned enterprises and build larger, more competitive financial institutions capable of competing regionally and globally.

"This is a major step toward strengthening Indonesia's investment management industry," Danantara Indonesia Chief Operating Officer Dony Oskaria said in a statement on Thursday.

"The four companies collectively manage more than Rp170 trillion in assets. Danantara will ensure these strengths are integrated through stronger strategy and governance to create greater value for Indonesia's economy," he said.

Dony said the four asset managers will be merged into a single entity within the next month under Danantara's ongoing restructuring program.

The combined company is expected to adopt an integrated business model that broadens access to investment products for both retail and institutional investors while offering more competitive investment solutions.

The consolidation comes as Indonesia seeks to deepen its capital markets and improve the competitiveness of its asset management industry, which remains fragmented despite rapid growth in retail investing. The number of registered investors, measured by Single Investor Identification (SID), has surpassed 20 million, fueled by rising participation from younger investors and digital investment platforms.

Mandiri Manajemen Investasi President Director Hardiyanto Pilia said the merger would create a national investment management institution with greater scale, capabilities and corporate governance.

He added that the merged company plans to develop thematic investment products for retail investors while leveraging the distribution networks of Indonesia's four largest state-owned banks, collectively known as Himbara, to expand its market reach.

BRI Manajemen Investasi President Director Arief Budiman said the merger would strengthen retail market penetration. BRI Manajemen Investasi managed Rp 52.61 trillion in assets as of June, making it the largest of the four firms.

BNI Asset Management, which oversees Rp 29.59 trillion in assets, said it would contribute investment expertise, product innovation and governance capabilities to the combined entity.

Meanwhile, PNM Investment Management, with Rp 10.31 trillion in assets under management, said its experience in inclusive investment products would help broaden access to investment services across Indonesia.

Danantara said the integration would be carried out gradually to ensure regulatory compliance and uninterrupted service for clients and business partners. The sovereign wealth fund expects the merger to create one of Indonesia's largest investment management companies and strengthen the country's capital market ecosystem.