OCBC, through its Indonesian subsidiary PT Bank OCBC NISP (OCBC Indonesia), has completed the acquisition of PT Bank Commonwealth Indonesia (PTBC). The financial terms of the deal were not disclosed.

The acquisition brings more than 1.2 million PTBC customers to OCBC Indonesia. PTBC is a pioneer in the country’s wealth management business, having been the first bank to obtain a licence as a mutual fund sales agent from Indonesia’s financial services authority, Otoritas Jasa Keuangan.

PTBC will continue to operate independently until the integration process is completed, scheduled for Q4 2024, OCBC says. In the meantime, PTBC will continue serving its customers with its banking products and services through its branches and digital channels.

OCBC Indonesia offers a full range of services to individuals across segments including private banking, small and medium-scale enterprises, and large corporations, through its mobile and internet banking channels, as well as its network of around 200 branches.

The bank boasts one of the highest credit ratings in Indonesia: AAA(idn)/stable from PT Fitch Ratings Indonesia.

Growing presence

Indonesia is one of OCBC Group’s core markets together with Singapore, Malaysia and Greater China, and presents many opportunities as Asean’s largest economy and the world's fourth most populous country, OCBC says. 

Moreover, China is Indonesia’s largest trading partner and its second largest investor. Combining PTBC’s capabilities with OCBC Indonesia’s enables OCBC Group to better capture the opportunities from the growing Asean-Greater China wealth, trade and investment flows, in line with the group’s corporate strategy.

“With the acquisition process now complete, our immediate priority is to ensure the successful operational integration of PT Bank Commonwealth Indonesia into OCBC Indonesia,” says Helen Wong, OCBC’s group chief executive officer.

"Rising Asean-Greater China flows are a focal point of Asia’s growth story and a big opportunity for us. Chinese companies, for instance, are looking to expand into Indonesia to tap its large young population and abundance of natural resources. Continuously strengthening our network across Asean and Greater China, and presence in other global financial centres, is therefore imperative to our strategy,” Wong stresses.

In 2004, OCBC became the first Singapore bank to acquire a banking stake in Indonesia with the acquisition of a 22.5% interest in Bank NISP – a stake that has increased over the years to the current 85%. It has been rebranded as OCBC Indonesia but its legal name remains as PT Bank OCBC NISP Tbk.