The New CEO of PT Danareksa Arief Budiman - Photo by Asuransi Tugu Pratama Indonesia

JAKARTA (TheInsiderStories) –  State owned Enterprise (SOEs) Ministry has appointed Arief Budiman as a new chief executive of PT Danareksa on Thursday (13/09). He replaces Heru Adhiningrat who had been leads the state-owned financial services firm for nine years.

The former Finance Director of energy producer PT Pertamina Arief Budiman has resigned today and his position filled by former chief executive of state-owned flight carrier PT Garuda Indonesia Tbk (IDX: GIAA) Pahala N. Mansyuri.

Budiman get the bachelor degree from from Bandung Institute of Technology and Master of Business Administration from Wharton School, University of Pennsylvania, United States.

He started his carried in as consultant in Booz Allen & Hamilton Asia in 1997, Merrill Lynch (Summer Associate , Investment Banking in 2001, Booz Allen & Hamilton USA (Associate) during 2003-2004 and PT McKinsey Indonesia from 2004-2014.

The SOEs ministry aims to set up its own financial services holding. According to Gatot Trihargo, deputy for SOEs ministry, the holding company was planned to be in charge of four state-owned banks, namely, PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Tabungan Negara Tbk (IDX:BBTN), PT Bank Mandiri Tbk (IDX:BMRI), PT Bank Rakyat Indonesia Tbk (IDX:BBRI), and PT Pegadaian led by Danareksa.

Consolidation through the establishment of the holding bank will basically not eliminate the entity of each bank. Government expects business must justify itself by delivering a number of strategic benefits and advantages.

The country’s banking regulator and the central bank have both been pushing for banks to merge, to shore up equity. The regulators want to halve the number of banks operating across the archipelago from around 120.

President Director of Bank Mandiri Kartika Wirjoatmodjo added that another benefit of the establishment of state-owned holding banks is that state banks can share infrastructure. He pointed out how it would be very good if the state-owned banks could have automated teller machines that can be used together.

The four banks have, under an Association of State-Owned Banks Association, already merged their ATM networks and set up a single switching company to manage the system.

While President Director of BNI Ahmad Baiquni is optimistic financial services holding overall assets can compete with the existing banks in Southeast Association.

With over 42 years of experiences since its founding in 1976 as a state-owned investment bank, Danareksa remains the singular Non Bank Financial Institution wholly owned by the Indonesian government. Its key businesses are investment banking, equity and debt capital markets, investment management and treasury.

Danareksa is a pioneering Indonesian financial institution and was the first to introduce mutual funds in Indonesia. It was also the first to launch a US Dollar-denominated fixed-income fund and promote syariah-based investments.

Today, Danareksa is the only local company to offer direct market access services to clients worldwide and has grown to become the company that has underwritten the most equity and debt placements in Indonesia.

Written by Staff Editor, Email: theinsiderstories@gmail.com

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