DBS Group has emerged as the frontrunner to acquire a controlling stake in Indonesia’s Panin Bank, according to sources familiar with the matter. The Singaporean banking giant is currently advancing through the second round of bidding, positioning itself ahead of Malaysia’s CIMB Group.
The proposed acquisition involves the sale of approximately 86% of Panin Bank, Indonesia’s 12th largest lender. The stake, jointly held by Australia’s ANZ Group and the founding Gunawan family, was valued at around US$1.8 billion as of Tuesday’s market close.
ANZ, which owns 39% of Panin Bank, has been seeking to divest its interest since 2013. The Gunawan family has reportedly remained flexible regarding the extent of its stake sale, depending on the valuation offered by potential buyers. Binding bids are expected by late April or early May, though the timeline may shift depending on market conditions.
Industry analysts suggest that a successful acquisition would significantly strengthen DBS’s presence in Indonesia, potentially positioning it among the nation’s top ten banks. Currently, DBS operates 34 offices in Indonesia through its subsidiary, PT Bank DBS Indonesia, with over 3,000 employees across 15 cities.
If the deal proceeds, it would mark the first major acquisition under the leadership of Tan Su Shan, who is set to assume the role of CEO at DBS on March 28. Tan has previously stated that the bank remains open to strategic acquisitions that align with its long-term growth objectives and contribute positively to earnings within a reasonable timeframe.
Panin Bank, founded in 1971 by Mu’min Ali Gunawan and listed on the Jakarta Stock Exchange since 1982, has a strong presence in consumer finance and private wealth. Last year, the bank reported an 8.2% rise in net profit to US$165 million, driven by higher interest income and lower provisions for bad loans.
DBS, ANZ, CIMB, and Panin Bank have not commented on the ongoing discussions. Panin Bank’s President Director Herwidayatmo directed inquiries to the bank’s controlling shareholders.
Past interest in Panin Bank’s stake has also been shown by Singapore’s OCBC and Japan’s Sumitomo Mitsui, reflecting strong regional demand for expansion opportunities in Indonesia’s banking sector.
