Schroders, a British global fund manager, is planning to close its business in Indonesia after operating for over 30 years, a move associated with the management overhaul led by new CEO Richard Oldfield, who is focused on streamlining underperforming business units.
“We continue to discuss with potential partners to ensure we continue to provide exceptional service and value to clients,” a Schroders Indonesia spokesperson said.
The company has appointed UBS as its mergers and acquisitions (M&A) financial advisor to facilitate the closing process and search for potential buyers.
Several parties are reported to be interested in acquiring Schroders’ business in Indonesia, including HSBC, Allianz, and PT Bank Negara Indonesia (BNI). However, UBS and HSBC declined to comment, while Allianz said it was unable to respond immediately. BNI, on the other hand, indicated it was open to options that could “strengthen” its business.
Although there is no official information regarding the valuation of Schroders’ business unit in Indonesia, the company is known to manage assets of around US$4 billion from various clients, including retail individuals and institutions, such as pension funds, insurance companies, and social institutions. This figure covers around 1.6 percent of the total assets managed by Schroders in the Asia Pacific region.
This closure of its Indonesian office is part of Schroders’ global strategy to improve operational efficiency and focus on markets with greater growth prospects. Discussions with potential strategic partners are ongoing.
Schroders has been operating in Indonesia since 1991. PT Schroder Investment Management Indonesia or Schroders Indonesia is part of Schroders Plc and is recognized as a licensed investment manager and supervised by the Indonesian Financial Services Authority (OJK).
