Jakarta, May 1 -- 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 ...