Insight

A History of Banking M&A in Indonesia

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Algo Research Team

Industry | Oct 03, 2024 | Views: 1041

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Key Summary:

  • A look at banking M&A history
  • Profitability down despite M&A
  • Who's up for sale next?

Pushed by regulators to merge in Indonesia, foreign banks have been acquiring local banks to establish presence in the past few years. But, these previous acquisitions were done at high multiples and prices while current profitability trend in the industry for the mid-sized banks is slowing.


The start: The wave of M&A in Indonesia notably began again when SMBC acquired then TPG-owned BTPN and soon after other foreign banks started to follow, paving a consolidation cycle in the industry.

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