Will Bangkok Bank Buy More Indonesian Banks?

Bangkok Bank Plc is committed to implementing a one-time payment to acquire 89.12 percent of Bank Permata’s stock at US$ 2.7 billion owned by PT Astra International Tbk and Standard Chartered Bank. As quoted by Bangkok Post, the Executive Director and Senior Executive Vice-President of Bangkok Bank, Chansak Fuangfu, revealed that his side was ready to finalize the transaction to purchase the bank’s stock according to the agreement they signed in December 2019.

The Financial Services Authority (OJK) Regulation No. 56/2016 states that the maximum amount of the shares owned by a financial institution is only 40 percent. Nevertheless, the Financial Services Authority’s executive head of banking supervision, Heru Kristiyana, on Thursday, January 16, said that his side was always ready to make an exception. As long as the interested party could provide any positive contribution to the banking industry or Indonesia’s economy as a whole, OJK would not hesitate to grant exceptional treatment. However, Heru refused to reveal what kind of participation that Bangkok Bank would give.