[JAKARTA] The Indonesian unit of OCBC has completed the acquisition of PT Bank Commonwealth (PTBC) in a deal worth 2.2 trillion rupiah (S$191 million).

PTBC is the Indonesian banking subsidiary of the Commonwealth Bank of Australia (CBA), the largest bank in Australia.

In a media release on Thursday (May 2), OCBC said that the acquisition was complete on May 1. OCBC Indonesia now owns 100 per cent of PTBC’s shares, making PTBC a wholly owned subsidiary of PT Bank OCBC NISP (OCBC Indonesia). The acquisition brings more than 1.2 million PTBC customers to OCBC Indonesia. 

OCBC said that the integration process will be finalised by the fourth quarter of 2024 Until then, PTBC will continue to serve customers as usual through its banking channels and products, including banking transactions at PTBC branches and through its digital channels.

OCBC Group chief executive officer Helen Wong said that the acquisition reinforces the Singapore bank’s robust presence in Indonesia.

“(This acquisition) signals our commitment to accelerating growth in the country, and to support our customers as they seek growth across multiple markets,” she said.

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up

“Rising Asean-Greater China flows is a focal point of Asia’s growth story and a big opportunity for us. Chinese companies for instance, are looking to expand into Indonesia to tap its large young population and abundance of natural resources.”

Wong added that continuously strengthening the network across South-east Asia and Greater China, and the presence in other global financial centres, is “imperative” to OCBC’s strategy.

In a separate statement, Parwati Surjaudaja, the president-director of OCBC Indonesia, described the acquisition as a significant milestone, given that PTBC has an attractive and complementary customer base in consumer banking and SME (small and medium-sized enterprise) segments in South-east Asia’s largest economy.

“We plan to leverage the combined capabilities of both entities to broaden OCBC in Indonesia’s products and services, and capture financial services growth opportunities in Indonesia,” she noted.

Indonesia is one of OCBC’s key markets alongside Singapore, Malaysia and Greater China.

In 2004, OCBC became the first Singaporean bank to procure a banking stake within the nation by acquiring a 22.5 per cent stake in PT Bank NISP, a medium-sized local bank that serves SMEs. This stake progressively expanded over the years to the current level of 85 per cent.