A wave of corporate actions involving large companies in Indonesia in recent weeks marks a shift in the business strategy direction of conglomerates. Giant business groups are no longer merely pursuing diversification or creating risky new businesses, but are instead focusing more on strengthening internal ecosystems through asset optimization and synergy between entities.
Sinarmas Group, Agung Sedayu Group, and Lippo Group are among the conglomerates currently at the forefront of this restructuring trend. Through PT Dian Swastatika Sentosa Tbk. (DSSA), Sinarmas Group injected Rp8.54 trillion into its subsidiary entities. This step was taken as an effort to strengthen the foundation of digital services and the company's operational capabilities in the long term.
On the other hand, Agung Sedayu Group, through PT Bangun Kosambi Sukses Tbk. (CBDK), injected Rp90.1 billion in capital into PT Industri Pameran Nusantara (IPN). The main focus is the management of the Nusantara International Convention Exhibition (NICE) facility in the PIK 2 area, which includes various supporting services ranging from hotels to lifestyle centers to integrate the property areas they own.
Lippo Group also took similar steps by restructuring the company's internal business. PT Multipolar Tbk. (MLPL) and PT Lippo Karawaci Tbk. (LPKR) transferred assets and food business units to PT Matahari Putra Prima Tbk. (MPPA). This strategy is expected to cut operational costs and simplify the management of business units with different business characteristics.
Market analysts assess that this strategic shift is driven by high funding costs and global economic uncertainty. Head of Research at RHB Sekuritas Indonesia, Andrey Wijaya, explained that deepening core business is far more efficient than expanding into new capital-intensive sectors. However, he warned of the risk of a "conglomerate discount" if the group structure becomes too complex and the benefits of synergy fail to be proven to investors.
Although the integration of subsidiaries opens up promising cross-selling potential, market players are still urged to remain cautious. The main challenge for conglomerates today is to ensure management effectiveness in integrating various business units, so as not to cause overlapping functions or excessive debt burdens that could erode future financial performance.
