Bank Central Asia, the most valuable lender listed in the Indonesia Stock Exchange, has acquired Rabobank International Indonesia. (Antara Photo/Sigid Kurniawan)
Bank Central Asia Takes Over Local Unit of Dutch Rabobank
BY :GITA ROSIANA
DECEMBER 12, 2019
Jakarta. Bank Central Asia, the most valuable lender listed in the Indonesia Stock Exchange, has acquired Rabobank International Indonesia, the local unit of Dutch Rabobank, as part of a strategic expansion.
The Rp 397 billion ($28 million) acquisition is that rare occasion, a local lender acquiring a foreign bank operating in Southeast Asia.
After the acquisition, BCA will fully control Rabobank Indonesia, the company said in a statement on Wednesday.
"The company will study the possibility of merging the acquired lender with other BCA subsidiaries," Raymon Yonarto, BCA's corporate secretary, said in the statement.
Rabobank Group decided to exit Indonesia as part of its global business restructuring, seeking to focus on wholesale banking instead of retail.
Bank Central Asia, which has a market capitalization of Rp 787 trillion, last month also acquired Bank Royal Indonesia, a small-sized local lender, for Rp 1 trillion with plans to develop it into an online-based lender.
Bank Indonesia has been encouraging banks operating in Indonesia to consolidate its businesses in the past decade. The central bank said fragmentation was one of the reasons why Indonesian banks are the most inefficient in the region.
Indonesia now requires foreign banks that want to acquire local banks to also acquire a smaller lender and merge them under one entity.
In March, Japanese financial giant Mitsubishi UFJ Financial Group (MUFG) completed a majority acquisition in Bank Danamon Indonesia, one of the largest acquisitions in Indonesia in the past decade.
MUFG later merged Danamon with local lender Bank Nusantara Parahyangan that was already under its control.
There are today 110 commercial lenders in Indonesia, down from 121 a decade ago.