Four State-Owned Banks Control 41 Percent of Banking Credit

In the State-Owned Enterprises (SOEs) roadmap, four state-owned banks (Bank Persero), namely Bank Mandiri, Bank BRI, Bank BNI, and Bank BTN, will be merged with Perum Pegadaian and Permodalan Nasional Madani. Danareksa will be the holding company.

Merging these four state-owned banks will enhance synergy among government institutions with similar businesses. Data from the Indonesian Financial Services Authority (OJK)'s Indonesian Banking Statistics show that the total credit disbursed by these four Bank Persero in September 2017 reached Rp 1,848.98 trillion, representing 40.69% of the total banking credit of Rp 4,543.59 trillion.

The merger of these six government-owned financial institutions into a single holding company will increase capitalization and liquidity. Furthermore, it will improve operational efficiency and facilitate access to international financial institutions.