MUFG explores options for stake in Indonesia’s Danamon including take-private deal: sources
Japan’s biggest financial institution is working with an adviser on a plan
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[TOKYO] Mitsubishi UFJ Financial Group (MUFG) is exploring options for Bank Danamon Indonesia, including a take-private of the lender or selling some its stake to increase the public float, people with knowledge of the matter said.
Japan’s biggest financial institution is working with an adviser on a plan, the people said, asking not to be identified because the deliberations are private and there is no certainty of a deal.
A spokesperson for Tokyo-based MUFG declined to comment, while Danamon did not have any immediate comment.
Earlier in 2026, Indonesia gave listed companies up to three years to increase their public floats as part of reforms to boost transparency. MUFG owns about 92.5 per cent of Danamon, which has a market value of almost 47 trillion rupiah (S$3.4 billion), according to data compiled by Bloomberg.
MUFG said in April that it was aware of the new free float rules and speculation on taking Danamon private, but that nothing had been decided. The Indonesian lender’s shares soared in April following media reports on a possible deal, almost doubling their gain this year.
MUFG agreed in 2017 to buy an initial stake in Danamon from Singapore investment company Temasek and affiliates, aiming to expand its presence in Indonesia. The Japanese lender then sought permission to increase its stake from authorities, who were then welcoming to such foreign investments, partly to encourage consolidation in the banking sector.
In 2019, MUFG said it had to book a US$1.9 billion impairment charge for its Danamon stake after the Indonesian bank’s shares plunged when MSCI removed it from its indexes following the takeover that resulted in a thin free float. MUFG later posted its first quarterly loss in a decade and cut its annual profit forecast after accounting for the hefty charge.
Danamon was established in 1956 and – with subsidiary Adira Finance – managed 275.7 trillion rupiah of assets at the end of 2025, its website shows. BLOOMBERG
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