JAKARTA – The Financial Services Authority (OJK) is still waiting for an official statement from PT Bank MNC Internasional Tbk (BABP) and PT Bank Nationalnobu Tbk (NOBU) regarding the continuation of their planned merger, which has been in preparation since 2023.

The merger between these two banks, owned by the MNC Group and Lippo Group respectively, was initially designed to meet capital requirements. However, the merger has since come into question as both banks are now deemed to have fulfilled those requirements.

At the end of January, South Korean insurer Hanwha Life Insurance reportedly expressed its intention to acquire a 40% stake in NOBU, equivalent to 2.99 billion shares.

“The presence of a new investor in NOBU suggests that the merger process is still under consideration, although the involvement of the original parties has not been entirely ruled out,” said Dian Ediana Rae, OJK’s Chief Executive of Banking Supervision.

Dian further noted that the consolidation between BABP and NOBU is still ongoing in principle, especially as the two banks already have cross ownership.

Even so, he emphasised that the final decision lies with the respective parties.

“This is not something that can be forced. If, in the end, both parties decide not to proceed, that is their right. We don’t want a situation like a ‘forced marriage’ that brings no happiness,” said Dian when speaking to the media on Tuesday (3/6).

On the other hand, Dian stressed that the OJK is still waiting for an official statement from both institutions.

He explained that the previous merger proposal was submitted in writing, and so any change in decision should also be formally communicated to the regulator.

In Wednesday’s (4/6) trading session, BABP shares rose 1.96% to IDR 52 per share, while NOBU shares increased 5 points or 0.72% to IDR 700 per share. (DK/ZH)