Heaptalk, Jakarta — The Financial Services Authority (OJK) has addressed the phenomenon of foreign banks gradually leaving Indonesia.
Dian Ediana Rae, the Executive Director of Banking Supervision at OJK, stated that the business prospects for foreign banks in the country remain positive, in line with national economic growth trends that have stabilized around 5% post-Covid-19. “The performance outlook for foreign banks in Indonesia is still in line with expectations, with their share of the industry being well-maintained,” Dian said on Tuesday (09/17).
In principle, OJK supports efforts to enhance the banking sector’s competitiveness for national and foreign banks operating in Indonesia. Dian added that the decision to remain in Indonesia or not is part of the parent company’s broader strategy, which is usually applied in the Indonesian market and other markets.
Dian further noted, “However, OJK will always support each bank’s best strategic plans while ensuring the financial system’s stability due to these strategic decisions.”
OJK has supported multiple corporate actions, including mergers between national and foreign ones, to bolster the banking industry’s competitiveness. “As for active industry steps such as acquisitions, mergers, or other corporate actions, we as the authority will continue to oversee these processes while prioritizing industry-standard procedures and adhering to regulations,” he stated.
Foreign banks are leaving the country one by one, with the latest being Bank Commonwealth officially becoming part of Bank OCBC NISP (OCBC) as of September 1, 2024. Previously, Citibank Indonesia announced the closure of its consumer banking business after selling its assets and liabilities to PT Bank UOB Indonesia.
