Foreign Banks Are Leaving Indonesia

In Indonesia, many local branches of major international banks operate. However, in recent years, there has been a trend of closing operations with private clients, followed by the sale of offices and assets to local financiers.
For instance, Citibank Indonesia officially ceased operations with private individuals and sold the corresponding assets to UOB Indonesia on November 18. The institution will continue its operations but solely with corporate clients. Citibank is not alone in this; the British bank Standard Chartered Bank Indonesia (SCBI) is also selling its retail assets to the Indonesian bank Danamon, and the transaction is expected to be completed by the end of 2023.
Recently, PT OCBC NISP Tbk (NISP) signed an agreement to purchase 99.00% of PT Bank Commonwealth's (PTBC) shares, owned by the Commonwealth Bank Australia (CBA). According to PTBC representatives, the sale was in line with CBA's strategy to enhance efficiency and focus on domestic business in Australia and New Zealand.
In previous years, several foreign banks also exited the Indonesian banking industry. Three years ago, Rabobank Indonesia left the country, ceasing operations after 29 years due to losses incurred during this period. In December 2019, PT Bank Central Asia Tbk (BBCA) announced the acquisition of Rabobank Indonesia.
In 2018, the Australian bank PT Bank ANZ Indonesia officially transferred its retail business in Indonesia to Singapore's PT Bank DBS Indonesia. ANZ Indonesia has been operating in the country since 1973.
Barclays, a foreign bank, was among the first to leave Indonesia. It entered the country in 2008, acquiring Akita Bank and renaming it Bank Barclays Indonesia. However, after 14 months, the decision was made to close the bank. According to Indonesian laws, a bank must operate for a minimum of five years after opening, so the owners had to endure a bit. The bank still exists but is in inactive status.
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