Jakarta (ANTARA) – Indonesia has begun restructuring state-owned PT Danareksa to transform it into a focused asset management firm, with projected assets under management of about Rp185 trillion (around US$10.7 billion).Danareksa will cease functioning as a holding company and instead merge into a single, stronger entity, aiming to become the country’s second-largest asset manager, said Dony Oskaria, head of the State-Owned Enterprises Supervisory Agency and chief operating officer of Danantara, in a statement on Thursday.The restructuring will involve spinning off subsidiaries that do not align with Danareksa’s core mandate as an asset manager, marking a shift away from its current multi-sector holding structure.Key elements of the transformation include spin-offs and cross-sector consolidation, designed to streamline operations and align business units with their respective industry competencies.Business segments such as industrial estates, construction, clearing services and financial services will be separated and consolidated into relevant sectoral holdings based on their core expertise.Danareksa will return to its original mandate as an asset management firm, with four state-owned asset management units set to merge under its umbrella, Oskaria said.The divestment of non-core subsidiaries is expected to be completed by mid-next month, with an official announcement on the consolidation targeted for May 10.The government expects the shift to a focused asset management model will improve efficiency, strengthen the company and enable more professional optimization of state-owned assets.Following consolidation, Danareksa is projected to oversee substantial funds, driven by the integration of investment managers from the state-owned banks association, known as Himbara.With the integration of Himbara’s investment management units, total assets under management are projected to reach Rp185 trillion, positioning Danareksa as Indonesia’s second-largest asset manager.The restructuring reflects broader efforts to streamline state-owned enterprises, enhance governance and unlock greater value from government-linked assets through more focused and professional management practices.