Indonesian Banks Achieve Successful Mergers Amidst MNC Bank-NOBU Setback

Successful Consolidations in Indonesian Banking Sector

The Indonesian banking sector has witnessed significant consolidation activity recently, with several major mergers achieving successful outcomes despite the recent setback in the proposed merger between PT Bank MNC Internasional Tbk. (BABP) and PT Bank Nationalnobu Tbk (NOBU). The failed merger, which was officially terminated in November 2025, contrasts with other successful banking consolidations that have strengthened capital structures and expanded business capabilities.

Notable Successful Mergers

Bank Syariah Indonesia (BRIS) Merger

One of the most significant mergers in recent Indonesian banking history was the formation of PT Bank Syariah Indonesia Tbk. (BRIS) in 2021. This merger brought together three state-owned Islamic banks: BRI Syariah, Bank Syariah Mandiri, and BNI Syariah. The consolidation created the largest Islamic bank in Indonesia, significantly enhancing the bank's market position and financial capabilities. By the end of 2024, BSI's assets had grown to Rp408.61 trillion, representing a compound annual growth rate (CAGR) of 14.28% since the merger. The bank's net profit for the first three quarters of 2025 reached Rp5.57 trillion, a 9.03% increase from the same period in the previous year.

OCBC NISP and Bank Commonwealth Integration

In 2024, PT Bank OCBC NISP Tbk. successfully integrated PT Bank Commonwealth, enhancing its position in the retail and wealth management segments. The integration process, completed on September 1, 2024, expanded OCBC Indonesia's customer base and strengthened its market presence. The merger was expected to create synergies and provide more comprehensive banking solutions to customers. OCBC Indonesia now operates with over 200 branches across major Indonesian cities, positioning it strategically in the market.

Other Notable Consolidations

Other significant banking consolidations include:

1. Bank Permata's integration with Bangkok Bank: Following Bangkok Bank's acquisition of majority shares in 2020, Bank Permata was effectively merged with Bangkok Bank's Indonesian operations on December 21, 2020. This integration strengthened Bank Permata's position in the local market and expanded its regional connectivity through Bangkok Bank's network.
2. BCA Syariah's merger with Bank Interim Indonesia: In December 2020, PT Bank BCA Syariah announced the successful merger with PT Bank Interim Indonesia, boosting BCA Syariah's core capital to approximately Rp2.7 trillion and total assets to Rp9.2 trillion.

Regulatory Developments and Future Outlook

The Financial Services Authority (OJK) has been actively promoting consolidation in the banking sector. In October 2025, OJK issued a formal letter to small banks, particularly those categorized under KBMI I, recommending comprehensive evaluations of their business conditions, including financial structures, business models, and growth prospects. The regulator suggested exploring consolidation and collaboration opportunities to strengthen capital bases and expand business scales. OJK is also considering eliminating the KBMI I category, which could potentially accelerate merger activities among smaller banks.

Challenges and Opportunities

Industry experts acknowledge that while consolidation offers numerous benefits, it also presents challenges, particularly for regional banks where local ownership pride can create integration hurdles. Moch Amin Nurdin, Advisor at Banking & Finance Development Centre, noted that unifying regional banks requires overcoming local egos and implementing comprehensive integration processes that can take considerable time. However, when executed properly, consolidation can lead to improved financial stability and enhanced competitiveness for the merged entities.

The recent successful mergers demonstrate that despite challenges, Indonesian banks can achieve significant benefits through strategic consolidation, positioning them better for future growth and regulatory compliance.