BTN (BBTN) Abandons Plan to Acquire Insurance Company

PT Bank Tabungan Negara (Persero) Tbk. (BBTN) has cancelled its plan to acquire an insurance company. BTN’s President Director, Nixon L.P. Napitupulu, stated that the bank is prioritising other areas of focus. “There are already many focuses at the moment,” Nixon said when met at the DPR Building on Monday (6/4/2026). He also indicated that the current situation is not supportive for insurance business prospects. Furthermore, there are plans by BPI Danantara to form a state-owned enterprise (SOE) insurance holding. “We’ll see, there will certainly be utilisation of SOE insurance. Because there is already an SOE, there is already an insurance holding,” Nixon said. However, he did not completely rule out the option of acquiring an insurance company. Nixon stated that the option is not appropriate to pursue this year. “Not this year. [Next year] we don’t know yet,” he added. Previously, Nixon had expressed BTN’s plans to expand its business through the establishment of a subsidiary. This housing specialist state-owned bank planned to establish a general insurance subsidiary with capital of around Rp250 billion, targeting establishment in the second half of 2026. However, Nixon conveyed that the bank chose to postpone this corporate move after coordinating with Danantara, which plans to merge SOEs in the insurance sector. He mentioned that the plan originated from the initiative of BTN’s pension fund and foundation to establish the insurance company Asuransi Binagria Upakara. But with the Financial Services Authority Regulation (POJK) requiring fulfilment of a minimum insurance capital of Rp1 trillion by 2028, the management of Binagria Upakara submitted a request to BTN to acquire it. He stated that Asuransi Binagria Upakara has solid financial performance, evidenced by its profitability ratio and relatively low claims ratio.