OJK Pushes KBMI I & II Bank Mergers, Bank Raya Responds

PT Bank Raya Indonesia Tbk (AGRO) has spoken out regarding the discourse on consolidation or mergers within the group of banks based on core capital (KBMI) I. Through such mergers, the government hopes banks can move up to KBMI II. Bank Raya Business Director Kicky Andrie Davetra stated that the company welcomes the regulator’s initiative to strengthen the capital structure of the national banking industry. The company views this step as capable of enhancing the resilience and stability of the banking system while encouraging a healthier industry. ‘We will certainly carefully follow and await the continuation of the banking consolidation study from the regulator,’ Kicky explained during the IDX Public Expose Live on Tuesday. The company believes that every structuring step taken by the authority can be a breakthrough to strengthen the effectiveness and efficiency of the national banking capital structure in facing global economic dynamics. Nonetheless, Bank Raya asserts that every strategic decision will still adhere to the principles of good corporate governance. ‘Of course, going forward, any potential consolidation or capital strengthening steps that will be taken are expected to always prioritise these principles and comply with the applicable provisions and regulations,’ he concluded. As of the first quarter of 2026, Bank Raya’s core capital was recorded at IDR 2.85 trillion. Consequently, Bank Raya falls into the KBMI I category for banks with core capital between IDR 3 trillion and IDR 6 trillion. Previously, OJK’s Chief Executive of Banking Supervision, Dian Ediana Rae, stated that strengthening KBMI I banks is part of a strategic agenda that must be pursued in a directed and prudent manner to reinforce the structure and resilience of national banking and support sustainable economic growth. This step is considered important, especially considering the dynamics of information technology development, the acceleration of banking digitalisation, global economic uncertainty, and the increasing risk of cyberattacks. OJK assesses that KBMI I banks still have room to strengthen capital and increase business scale through strengthening steps, both organically and inorganically. Dian stated that his party had conveyed an appeal for fundamental strengthening and consolidation to mini banks at the end of October 2025. OJK then urged every KBMI I bank to carry out a comprehensive and ongoing evaluation of business performance, capital, asset quality, governance, business models, and long-term prospects, including identifying capital strengthening options and consolidation opportunities suitable to each bank’s characteristics. Dian even mentioned that merger actions could be pursued by mini banks whose performance is not growing, adding that this requires a visionary outlook from the controlling shareholders.