Foreign-owned Indonesia Banks on IDX
Among the top 100 largest company by market cap, there are 5 foreign-owned banks, namely PT Bank Permata Tbk (BNLI), PT Bank CIMB Niaga Tbk (BNGA), PT Bank OCBC NISP Tbk (NISP), PT Bank Danamon Indonesia Tbk (BDMN), PT Bank SMBC Indonesia Tbk (BTPN).
The total of 17 foreign-owned banks shown in the image made up 14.28% of banks listed on the IDX.
According to the Infobank Research Bureau, national banks continue to dominate Indonesia’s banking sector. These banks are primarily owned by the central government through state-owned enterprises (BUMN), regional governments, local entrepreneurs, and to a lesser extent, foreign investors. While foreign banks face tough competition from local institutions, Indonesia’s banking market remains attractive. This is evident from the continued presence of foreign-owned banks operating in the country.
A few reasons that drive their interest may be:-
- Saturation in their home countries’ banking markets
- The need to sustain growth through international expansion
- Their already established networks that support and align with their investment flows into Indonesia