T

he nation’s banking regulator Bank Indonesia (BI) has not yet received a formal report from Singapore’s DBS Holdings Group Ltd. on its takeover of Indonesia’s sixth-largest bank PT Bank Danamon (BDMN).

“Up until now, we haven’t received written report or request [from DBS]. We will discuss possible steps after we have,” BI Governor Darmin Nasution told a media briefing on Friday.

Darmin, however, said that the central bank had assessed DBS’ plan but declined to disclose the results.

His comments come after Indonesian lawmakers and bankers demanded equal treatment for domestic lenders wanting to operate in Singapore, pointing out DBS is free to acquire up to 99 percent in Danamon in a US$7.2 billion deal, the largest ever made by a Southeast Asian bank.

BI deputy governor Halim Alamsyah has said that the central bank wanted to discuss reciprocity issues with the Monetary Authority of Singapore (MAS) in light of the planned DBS’ takeover on Danamon.

PT Bank Negara Indonesia (BNI) is the only Indonesian bank with a so-called full banking license for a wider range of services in Singapore, while Citigroup is the only foreign player that does not face limits on the number of branches and teller machines (ATMs) there.

A DBS executive did not respond to The Jakarta Post’s queries to clarify BI’s statement, but DBS Indonesia president commissioner Bernard Tan has said that the lender was supposed to file documents and reports last week.

“DBS will work closely with local regulators to ensure that the process runs smoothly and meets all regulatory requirements,” Karen Ngui, a managing director at DBS Group, recently told the Post in an emailed statement.

“Given the way the Indonesian laws are structured, the bank is fairly confident and hopeful that it will receive approval within the second half of the year,” she added.

Since massive bank closures in the aftermath of the 1997/1998 Asian financial crisis, Indonesia has been allowing investors, both local and foreign, to own up to a 99 percent stake in local banks to spur growth in the sector.

Shares in DBS have dropped more than 5 percent since the lender’s announcement on the planned Danamon takeover in Jakarta on April 2, closing Friday’s trading session at $13.48 per share.

Investors might be concerned over the success of the acquisition process after a frosty reception from Indonesia, and DBS’ capacity to pay out Rp 21.2 trillion in cash for minority shareholders — a move which might be funded through a bond offering, analysts said.

Danamon’s shares, on the other hand, have been listed by the Indonesia Stock Exchange (IDX) as the number one index mover for the month, having risen over 35 percent so far in April to close at Rp 6,250 apiece on Friday.

Hans David Tampubolon contributed to this story