Danantara Challenges State-Owned Banks to Become Regional Players

Call for Enhanced Regional Competitiveness

Danantara Indonesia's Chief Investment Officer, Pandu Sjahrir, has urged state-owned banks (Himbara) including PT Bank Mandiri (BMRI), PT Bank Rakyat Indonesia (BBRI), PT Bank Negara Indonesia (BBNI), and PT Bank Tabungan Negara (BBTN) to become regional banking champions. Speaking at the Antara Business Forum in Jakarta, Sjahrir emphasized that as Indonesia is the largest country in Southeast Asia, its banks should have comparable capacity and scale.

Market Capitalization Comparison

The current market capitalization of these state-owned banks falls short compared to regional peers. For instance, DBS Bank Singapore boasts a market capitalization of US$110 billion (approximately Rp1.839 quadrillion). In contrast, PT Bank Mandiri (BMRI) has a market capitalization of Rp452.67 trillion, while BBRI stands at Rp606.24 trillion, BBNI at Rp166.35 trillion, and BBTN at Rp16.84 trillion. Sjahrir pointed out that these figures are significantly lower than their regional counterparts, highlighting the need for substantial growth.

Government Support for State-Owned Banks

In a related development, the government has injected Rp76 trillion in liquidity into these state-owned banks as of November 2025 to stimulate credit growth. The Ministry of Finance transferred government funds from Bank Indonesia to Mandiri, BNI, BRI, and Bank Jakarta, with Mandiri, BNI, and BRI each receiving Rp25 trillion and Bank Jakarta getting Rp1 trillion.

Path Forward

Sjahrir questioned how these banks could achieve significant growth over the next four years, suggesting that reaching a market capitalization of US$100 billion would require appropriate incentives. This challenge underscores the need for strategic planning and potential reforms to enhance the competitiveness of Indonesia's state-owned banks on a regional scale.