The transaction will include transfer of Standard Chartered’s conventional credit card, personal loan, mortgage and auto loan portfolios. The process is to be concluded in the fourth quarter of this year but will be subject to regulatory requirements, according to the bank.

Despite the transaction, Standard Chartered said it would continue to offer consumer, private and business banking (CPBB) services in Indonesia that included wealth management and deposit products, as well as “digital loan partnerships”.

“This transfer is part of Standard Chartered Group’s strategic refresh in 2021,” Andrew Chia, cluster chief executive officer for Indonesia and ASEAN markets at Standard Chartered, said in a statement on Monday.

“We remain committed to grow and invest in Indonesia, an important ASEAN hub for Standard Chartered,” he added.

Standard Chartered said the bank’s corporate, commercial and institutional banking (CCIB) business would be unaffected by the transfer and reiterated that it would continue to grow the segment in Indonesia.

The announcement from Standard Chartered comes two years after Citibank Indonesia announced its exit from consumer banking operations in 13 countries, including Indonesia, to focus instead on institutional clients.

In ASEAN, the US-based lender agreed to sell its consumer-banking franchises in Indonesia, Malaysia, Thailand and Vietnam to Singapore-based United Overseas Bank (UOB).

“It's because we don't have a natural advantage anymore,” Citi Asia Pacific CEO Peter Babej told The Jakarta Post in an interview in July last year, explaining its decision to exit from the consumer business.

“There are other banks, including some local and regional banks, that are going to be better positioned to invest in those businesses, and they are going to be better owners,” he said separately, adding that the move allowed the bank to free up capital to be invested in other segments.

Standard Chartered said in its statement that Danamon had a strong track record in Indonesia and that it was confident that Danamon was well-positioned to cater to its clients’ borrowing needs.

Bank Danamon said in a statement on Monday that it aimed to strengthen its consumer business and scale up its operations to achieve greater efficiency from investments in its branch network and digital banking, among others.

Danamon expects the acquisition to further accelerate its consumer lending portfolio growth, which grew by 18 percent last year.

“We are excited to announce the acquisition of SCBI’s conventional retail loans portfolio,” Hafid Hadeli, vice president director at Bank Danamon, said.

“I would also like to take this opportunity to welcome the new customers and assure that both Danamon and SCBI are fully committed [to] a smooth and seamless onboarding process,” he added.