Misbakhun on Bank Consolidation: It Shouldn't Be Measured Solely by Capital
Jakarta, CNBC Indonesia - Commission XI of the Indonesian House of Representatives, together with the government, has agreed on the draft bill concerning amendments to Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK) to be brought to the Plenary Session of the Indonesian House of Representatives, held today, Thursday (4 June 2026).
Of the seventeen points of revision in this P2SK bill, one of them discusses national bank consolidation.
The Chairman of Commission XI of the Indonesian House of Representatives, Mukhamad Misbakhun, highlighted the impact of national bank consolidation in the implementation of the P2SK bill. According to him, consolidation policies need to be assessed comprehensively so that they do not only focus on the capital aspect, but also pay attention to the characteristics and roles of each banking group.
“Bank consolidation cannot only be measured by the capital aspect. The characteristics and roles of each banking group also need to be considered,” said Misbakhun in a Public Hearing Meeting (RDPU) of the P2SK Commission XI of the Indonesian House of Representatives with Perbanas, Himbara, Perbarindo, and Asbanda, in Nusantara I, Senayan, Jakarta, quoted on Thursday (4 June 2026).
He explained that the discussion regarding capital is important because the banking sector has diverse characteristics. Several banking groups, such as Rural Banks (BPR) and Regional Development Banks (BPD), are considered to have different roles and business models compared to large national banks.
Misbakhun affirmed that Commission XI of the Indonesian House of Representatives will strive to ensure that the implementation of the P2SK bill can accommodate the needs of the industry as a whole. This step is also part of the Indonesian House of Representatives’ supervisory function of the development of the national financial services sector.
“Bank consolidation is essentially a process that takes place naturally in the development of the industry. Competitive dynamics have encouraged banks to consolidate gradually,” Misbakhun emphasized.
In addition to discussing bank consolidation, Misbakhun also highlighted various developments that have emerged along with the acceleration of digitalization in the financial sector. According to him, digital transformation has brought about major changes in the banking industry that need to be anticipated together by regulators and industry players.
He assessed that the development of digital services is not evenly distributed across all banking groups. Several large banks are considered to have stronger capabilities in developing digital services, while some small-scale banks still face various challenges, both in terms of infrastructure, technology investment, and the ability to adapt to changing business models.
“This digitalization of banking is starting to become widespread. Perbanas’ digitalization is very strong, followed by other groups. But for some banks, especially those with a smaller scale, digitalization is still a challenge in itself,” said Misbakhun.
(haa/haa)