KONTAN.CO.ID - JAKARTA, July 7 -  The board of Indonesia's sovereign wealth fund, Danantara, has decided to merge four state-owned asset management firms into a single entity, the fund said on Tuesday.

The move comes after President Prabowo Subianto instructed Danantara to reduce the number of state-owned enterprises from about 1,000 to some 200 to improve efficiency.

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The firms merged are PNM Investment Management, BNI Asset Manajemen, Mandiri Manajemen Investasi, and BRI Manajemen Investasi.

Danantara said in a statement the move is aimed at improving governance and efficiency.

"Through the merger, Danantara will have Indonesia's biggest asset management firm that can integrate asset portfolios, improve capability and management," Danantara said.