Foreign banks accelerate expansion in Indonesia amid government-led consolidation push

In line with the Indonesian government's drive to consolidate the competitive banking sector, foreign-owned lenders are expanding their footprints. OCBC NISP of Singapore signed a May agreement to purchase HSBC Indonesia's retail banking and wealth-management operations, a deal slated for completion next year that will bring roughly 336,000 new customers and about Rp 89.8 trillion in assets under management to OCBC's Indonesian subsidiary, while HSBC will refocus on corporate and institutional banking.

Simultaneously, Danamon Indonesia disclosed plans to merge its operations with the Indonesian branch of Japan's MUFG Bank, aiming for completion by 2027 and creating a financial institution with combined assets exceeding Rp 480 trillion. These moves illustrate how foreign banks are capitalising on regulatory encouragement to build larger, more diversified platforms in the country's biggest economy.