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Jakarta Post

Asian lenders bank on Indonesia for growth

  • Riska Rahman

    The Jakarta Post

PREMIUM
Jakarta   /   Tue, November 5, 2019   /  07:16 am
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Illustration of a bank(Shutterstock/Anton Violin)

Asian banks in search of business opportunities are turning to Indonesia, with financial institutions from Japan, Korea and Singapore hoping to acquire domestic banks as the local authority finalizes a plan to relax foreign ownership in local banks. Two Japanese lending giants earlier this year led takeovers of domestic banks. Japan’s third-largest lender by assets, Sumitomo Mitsui Banking Corporation (SMBC), owns a 96.89 percent stake in private lender PT Bank Tabungan Pensiunan Negara (BTPN). SMBC bought BTPN’s shares for Rp 14.28 trillion (US$1.01 billion) under a tender scheme. It then merged BTPN with the group’s Indonesian subsidiary, PT Bank Sumitomo Mitsui Indonesia, in February. One of the world’s biggest lenders and the largest by assets in Japan, Mitsubishi UFJ Financial Group (MUFG) also rocked the banking industry with this year’s bigge...