Bank Danamon Signs MoU for Integration Exploration with MUFG Indonesia

PT Bank Danamon Indonesia Tbk (BDMN) has announced plans to explore integration with MUFG Bank, Ltd., Jakarta Branch, or MUFG Indonesia. This step will give rise to a financial company with combined assets exceeding Rp480 trillion.

Danamon’s management stated that the company has signed a memorandum of understanding (MoU) with MUFG Bank, Ltd. to explore the potential integration of the two entities on Monday (11/5/2026).

Danamon and MUFG Indonesia have agreed to begin preparatory work with the aim of signing a binding agreement in the next stage.

The integration structure will be outlined in an Integration Plan to be submitted to regulators, announced to the public, and approved by shareholders in accordance with applicable provisions.

The integration plan is still awaiting approval from relevant authorities and Danamon’s shareholders. The company estimates the integration will become effective in 2027.

Until the integration process is complete, Danamon assures that there will be no changes to operations or services to customers.

“Danamon and MUFG Indonesia customers can continue to transact and use financial products and services as usual, without changes to products and services, operating hours, or existing office networks,” the management wrote.

In addition, all contractual relationships with business partners such as vendors, contractors, and outsourcing companies will continue to operate normally.

For information, Danamon, established in 1956, has been a consolidated subsidiary of MUFG Bank since 2019. As of the end of 2025, Danamon has consolidated total assets of Rp275.7 trillion, including contributions from PT Adira Dinamika Multi Finance Tbk (ADMF).

Meanwhile, MUFG Indonesia, which has been operating since 1968, recorded total assets of Rp207 trillion as of the end of 2025 and focuses on serving large corporate customers, including Japanese companies and multinationals in Indonesia.

Thus, if the integration is realised, the combined total assets of the two entities could reach approximately Rp482.7 trillion.

Danamon added that this integration plan is also in line with the banking consolidation agenda currently being promoted by the Financial Services Authority (OJK).