Bank Central Asia prowls for acquisition targets

Bloomberg

PT Bank Central Asia is seeking to buy a mid-size lender as intensifying competition and a sluggish Indonesian economy prompt some owners to consider exiting the industry, according to the firm’s top executive.
Southeast Asia’s largest lender by market value after DBS Group Holdings Ltd. has set aside about 4 trillion rupiah ($295 million) this year to finance an acquisition, President Director Jahja Setiaatmadja said. While there have been several offers, the Jakarta-based bank, majority-owned by billionaires Budi Hartono and Michael Hartono, is yet to zero in on one, he said. Demand for loans is dwindling as Indonesian companies delay fresh investments and banks focus on cleaning up bad debts accumulated during the commodity slump. Indonesia’s banking regulator is urging consolidation of the industry, where more than 100 banks operate, making it tough for smaller lenders to compete.
“Many offers came to us but we haven’t found a suitable one,” Setiaatmadja said in an interview on Oct. 26. “We’re looking for a good bank that’s facing difficulties in running the business. We’re open to purchasing small or mid-sized banks, as long as we’re capable.”