Several of Asia’s largest banks are preparing bids for HSBC Holdings plc’s retail business in Indonesia, according to sources familiar with the matter, as lenders seek to strengthen their presence in Southeast Asia’s biggest economy.
Potential bidders include Singapore’s DBS Group Holdings Ltd, Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank Ltd (UOB), along with Malaysia’s CIMB Group Holdings Bhd and Japan’s Sumitomo Mitsui Financial Group Inc (SMFG). The sources requested anonymity as the discussions are private.
HSBC is said to be working with financial advisers on a possible sale of its consumer banking operations in Indonesia. The assets could be valued at more than US$200 million (RM777.4 million). Binding offers are reportedly due by mid-March, although deliberations are still ongoing.
The bank has previously stated that it is conducting targeted strategic reviews of its retail operations in Australia, Indonesia and Egypt, as well as HSBC Life Singapore, but no final decisions have been announced.
Since becoming chief executive in 2024, Georges Elhedery has led a sweeping restructuring of HSBC, which included reducing management layers, cutting thousands of jobs and reorganising the group into four core divisions. The bank has also exited several non-core businesses as part of the overhaul.
Spokespersons for DBS, UOB, OCBC, CIMB and SMFG declined to comment on the potential bids, while HSBC declined to provide additional details regarding its Indonesia review.
Indonesia’s strong economic momentum — with growth reaching a three-year high last quarter — has made the market increasingly attractive to regional lenders. The potential sale follows a broader trend of global banks such as HSBC and Citigroup Inc divesting non-core assets. ANZ Group Holdings Ltd has also explored the possibility of selling its stake in PT Bank Pan Indonesia.
HSBC has operated in Indonesia since 1884. It acquired PT Bank Ekonomi Raharja in the 2000s and rebranded it as PT Bank HSBC Indonesia in 2016. The Indonesian unit currently employs around 2,300 staff and operates 28 branches, serving corporate, institutional and retail clients.
The bank had previously considered a potential initial public offering of its Indonesian business in 2022, according to people familiar with earlier discussions.
