TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Mergers, acquisitions in banking industry mark 2019 despite weak loan growth

  • Riska Rahman

    The Jakarta Post

PREMIUM
Jakarta   /   Mon, December 30, 2019   /  09:11 am
The Jakarta Post Image
A teller serves a customer at Bank Muamalat in Jakarta, in this file photo dated Sept. 15, 2019.(JP/R. Berto Wedhatama)

Numerous mergers and acquisitions (M&As) marked the year 2019 for Indonesia’s banking industry despite loan growth declining to levels unseen in more than three years amid global economic uncertainties. This year’s M&As started with Japan’s Sumitomo Mitsui Banking Corporation (SMBC) increasing its stake in private lender Bank Tabungan Pensiunan Negara (BTPN). SMBC then merged its Indonesian unit with BTPN in January. Another Japanese lending giant Mitsubishi UFJ Financial Group (MUFG) took over Bank Danamon’s and Bank Nusantara Parahyangan’s (BNP) shares from the public, a corporate action known as a tender offer. Although market players had been expecting the transaction as discussions on the acquisition had been ongoing since late 2017, they did not expect the sum of money the Japanese financial heavyweights poured in to acquire Danamon an...