Saturday, 15 June 2024

OCBC deepens Indonesia presence with PT Bank Commonwealth acquisition

5 min read

OCBC’s Indonesian subsidiary, PT Bank OCBC NISP Tbk (OCBC Indonesia), has completed the acquisition of PT Bank Commonwealth Indonesia (PTBC) on 1 May 2024.

OCBC Indonesia now owns 100% of PTBC's shares, making PTBC a wholly-owned subsidiary of OCBC Indonesia. The acquisition brings more than 1.2 million PTBC customers to OCBC Indonesia. PTBC brings with it demonstrated capabilities in wealth management where it has been a pioneer, having been the first bank to obtain a licence as a mutual fund sales agent from Indonesia’s financial services authority, BAPEPAM-LK, now known as Otoritas Jasa Keuangan.

PTBC will continue to operate independently until the integration process is completed. This is targeted to be in the fourth quarter of 2024. During this period, PTBC will serve its customers as usual with its banking products and services, including banking transactions at PTBC’s branches and through digital channels.

OCBC Indonesia offers a full range of services to individuals across segments including private banking, as well as SMEs and large corporations. These customers are served through mobile and internet banking channels, as well as OCBC Indonesia’s network of around 200 branches. The bank holds one of the highest credit ratings in Indonesia, namely AAA (idn)/stable from PT Fitch Ratings Indonesia.

This acquisition underscores Indonesia’s continued importance to OCBC Group. It is one of the group’s core markets together with Singapore, Malaysia and Greater China, and presents many opportunities as ASEAN’s largest economy and the world's fourth most populous country. China is Indonesia’s largest trading partner and Indonesia’s second largest investor. Combining PTBC’s capabilities with OCBC Indonesia’s enables OCBC Group to better capture the opportunities from the increasing ASEAN-Greater China wealth, trade and investment flows, in line with the group’s corporate strategy.

Helen Wong, group CEO of OCBC, said: “With the acquisition process now complete, our immediate priority is to ensure the successful operational integration of PT Bank Commonwealth Indonesia into OCBC Indonesia. We are working closely with its management team and are committed to a smooth transition for the customers and employees. Customers of both banks have a lot to look forward to, as we leverage our complementary strengths to expand our product and services offerings in Indonesia."

This acquisition builds on the bank's strong presence in Indonesia, signaling its commitment to accelerating growth in the country, and supporting customers as they seek growth across multiple markets. The rising ASEAN-Greater China flows is a focal point of Asia’s growth story and a big opportunity for the bank. Chinese companies, for instance, are looking to expand into Indonesia to tap its large young population and abundance of natural resources. Continuously strengthening its network across ASEAN and Greater China, and its presence in other global financial centres, is therefore imperative to its strategy.

The acquisition maks as the latest strategic milestone for OCBC in Indonesia. It became the first Singapore bank to acquire a banking stake in Indonesia with the acquisition of a 22.5% stake in PT Bank NISP Tbk (Bank NISP) in 2004 – a stake that has increased over the years to the current 85%. Bank NISP was renamed PT Bank OCBC NISP Tbk (Bank OCBC NISP) in 2008. In 2023, in line with OCBC’s brand refresh, Bank OCBC NISP rebranded to OCBC Indonesia and adopted OCBC’s refreshed logo, while retaining its legal name as PT Bank OCBC NISP Tbk.

Re-disseminated by The Asian Banker

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