OCBC is said to emerge as lead bidder for HSBC Indonesia assets

[HONG KONG/SINGAPORE] OCBC has emerged as the preferred bidder to buy HSBC Holdings’ retail assets in Indonesia, sources familiar with the matter said, as the Singaporean lender seeks to boost its presence in South-east Asia’s largest economy.

OCBC aims to reach an agreement that could value HSBC’s consumer business in the country at more than six trillion rupiah (S$444 million), the sources said, asking not to be identified because the deliberations are private.

The Singaporean bank is the likeliest buyer after outbidding others, the sources said. Still, talks are ongoing and no final decisions have been made, they said, adding that other bidders could also emerge.

A representative for OCBC declined to comment. A spokesperson for HSBC said that the bank is reviewing strategic options for its retail banking business in Indonesia and no decision has been made, declining to comment further.

OCBC has a presence in Indonesia with its Jakarta-listed subsidiary Bank OCBC NISP Tbk. It has grown in the country both organically and via acquisitions, including Bank Commonwealth Indonesia in 2024.

An acquisition would be the first by the new OCBC CEO Tan Teck Long. He is planning a deeper expansion into Asia, adopting more technology from artificial intelligence and digitalisation, and supporting clients’ transition to net-zero emissions. That includes growing the affluent segment in Hong Kong, as well as expanding private banking in Indonesia.

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Fast-growing markets such as Indonesia are attracting banks looking to expand, especially with the likes of HSBC and Citigroup selling some non-core assets. ANZ Group Holdings has also considered selling its stake in Bank Pan Indonesia.

Other firms that considered bids for the HSBC assets in Indonesia include Singapore’s DBS Group Holdings and UOB, Malaysia’s CIMB Group Holdings, as well as Japan’s Sumitomo Mitsui Financial Group, sources familiar with the matter have said.

HSBC has said that it’s carrying out targeted strategic reviews of its retail businesses across Australia, Indonesia and Egypt, but no decisions have been made. HSBC Life Singapore is also being reviewed. BLOOMBERG