Bank Jatim Becomes Parent Bank of Bank Banten in Strategic Merger

Strengthening Capital and Operations

Bank Jatim has officially become the parent bank of Bank Banten through a Business Group Arrangement (KUB), marking a significant development in Indonesia's banking sector. This strategic move aims to strengthen Bank Banten's capital structure and enhance its operational capabilities. The arrangement was formalized during an Extraordinary General Meeting of Shareholders (EGMS) held at the Banten Governor's Office on November 28, 2025.

Meeting Regulatory Requirements

The KUB arrangement between Bank Jatim and Bank Banten addresses the minimum core capital requirement of Rp3 trillion mandated by OJK Regulation No. 12/2020. By making Bank Jatim the parent bank, Bank Banten can leverage Jatim's resources to meet this regulatory threshold. Banten Governor Andra Soni emphasized that while Bank Jatim becomes the parent bank, the provincial government will maintain strategic control over Bank Banten's shares and oversight.

Business Synergy and Future Plans

The partnership between Bank Jatim and Bank Banten is expected to create significant business synergies. Bank Banten's CEO, Muhammad Busthami, highlighted that the collaboration goes beyond capital compliance, focusing on business development and operational enhancements. One example of this synergy is the implementation of Smart Hospital services at Balaraja Regional Hospital.

Regional Economic Impact

The arrangement is expected to have a positive impact on Banten's regional economy. Governor Andra Soni hopes that Bank Banten will play a crucial role in driving economic growth, increasing investment in human resources, and enhancing productivity. The bank is also expected to channel credit to productive sectors while maintaining Good Corporate Governance (GCG) and Environmental, Social, and Governance (ESG) principles to improve sustainability and public trust.

Future Prospects

Muhammad Busthami has appealed to other regencies and cities in Banten to entrust their regional treasury accounts to Bank Banten, emphasizing the bank's local roots and commitment to regional development. This move is seen as a way to strengthen Bank Banten's position and further its business growth in the region.