OJK Reveals Several KBMI 1 Banks Plan Consolidation
Jakarta (ANTARA) - The Financial Services Authority (OJK) has revealed that several banks in the Kelompok Bank berdasarkan Modal Inti (KBMI) 1 category are currently planning to consolidate and increase their business scale.
“OJK leaves the consolidation decision to the shareholders of each bank based on business considerations and corporate strategy,” said OJK Chief Executive of Banking Supervision Dian Ediana Rae in a written statement in Jakarta, Wednesday.
Regarding the free float obligation in the banking sector, Dian reminded that this also applies to all bank issuers, including KBMI 1.
OJK emphasised that the free float obligation for banking issuers listed on the capital market can be fulfilled through adjustments to the share ownership structure until the free float share amount is met, including through the merger of two or more banks.
“The mechanism for implementing the free float and bank mergers refers to the applicable capital market regulations,” he said.
Dian said the strengthening of fundamentals and consolidation of KBMI 1 banks is currently an appeal and will be evaluated periodically to see its success rate.
OJK emphasised that this policy direction is not a rushed policy, but rather a gradual and measured strengthening process that prioritises dialogue with the industry.
In addition, this policy is oriented towards creating a banking sector that is stronger, more efficient, innovative, and capable of providing better services to the public while maintaining financial system stability and customer protection.
The appeal for strengthening fundamentals and consolidation was conveyed to KBMI 1 banks in October 2025.
OJK urged each KBMI 1 bank to conduct a comprehensive and continuous evaluation of business performance, capital, asset quality, governance, business models, and long-term prospects, including identifying capital strengthening options and consolidation opportunities that suit each bank’s characteristics.
According to OJK, an inorganic approach through consolidation is necessary to boost the performance of banks that are experiencing stagnation.
OJK’s approach is to encourage consolidation and/or corporate actions naturally and voluntarily based on sound business assessments.
Each strengthening plan will be assessed on a case-by-case basis, taking into account regulatory compliance, prudential principles, and customer protection aspects.
In general, OJK views the strengthening of KBMI 1 banks as a necessary and prudent step to strengthen the structure and resilience of the national banking sector.
This step is also needed to increase the economies of scale of the banking industry to drive national economic growth.
Furthermore, the strengthening of KBMI 1 banks is carried out considering the dynamics of information technology development, the acceleration of banking digitalisation, global economic uncertainty, and the increasing risk of cyberattacks.
“The new P2SK Law also mandates OJK to take concrete steps to realise the consolidation of commercial banks,” said Dian.