Indonesia – PT Bank Danamon Indonesia Tbk (Danamon) has signed a memorandum of understanding with MUFG Bank to explore the potential integration of its operations with MUFG’s Jakarta branch, marking a move to strengthen the group’s banking presence in Indonesia.
The proposed integration remains subject to regulatory and shareholder approvals, with the companies expecting the process to take effect within 2027. Both parties have begun preparatory work ahead of a potential binding agreement at a later stage.
According to the companies, the integration aims to combine Danamon’s nationwide banking network and retail capabilities with MUFG Indonesia’s corporate banking expertise and international network. The combined entity is expected to continue operating as a consolidated subsidiary of MUFG Bank.
The integration structure will be outlined in an Integration Plan, which will be submitted to relevant authorities and shareholders in line with applicable regulations.
Until the integration is completed, both Danamon and MUFG Indonesia said there will be no changes to their day-to-day operations. Customers will continue to access existing products and services through current branch networks and operating hours, while contractual arrangements with business partners and vendors will also remain unchanged.
Danamon has been a consolidated subsidiary of MUFG Bank since 2019. As of 31 December 2025, the bank reported consolidated total assets of Rp275.7t, supported by its conventional banking business, sharia unit, and financing subsidiary, PT Adira Dinamika Multi Finance Tbk.
Meanwhile, MUFG Indonesia, which has operated in the country since 1968, reported total assets of Rp207.0t as of the same period and serves Indonesian, Japanese, and multinational corporate clients.
The planned integration also aligns with the Indonesian Financial Services Authority’s broader banking consolidation agenda.
