Indonesia’s sovereign wealth fund, Danantara, is looking to take direct ownership of Bank Syariah Indonesia (BRIS). This move would likely involve Bank Mandiri, Bank Negara Indonesia (BNI), and Bank Rakyat Indonesia (BRI) selling off their shares in BRIS, according to a report from UOB Kay Hian (UOBKH).
Current Ownership and Potential Impacts
Currently, Bank Mandiri is the primary stakeholder in BRIS with a 52% share, while BNI holds 23% and BRI has 15%. If Danantara’s plan receives the necessary regulatory approval and goes through, BRIS could face some short-term transitional hurdles and might lose the benefits it currently gains from its close relationship with Bank Mandiri.
UOBKH analyst Posmarito Pakpahan explained that Bank Mandiri, as the controlling shareholder, has been crucial in establishing BRIS, fostering its growth, and building its early reputation since its inception in 2021. Being part of the Bank Mandiri group has also reportedly provided BRIS with access to shared infrastructure and a unified risk management system. BRIS has shown impressive performance, with assets growing at a compound annual growth rate (CAGR) of 15.6% between 2021 and 2024, significantly outpacing the industry’s 7.2% growth. Given this strong foundational support, Pakpahan anticipates some initial challenges for BRIS if it is divested from Bank Mandiri.
Implications for Selling Banks
While new synergies among companies under Danantara might offer flexibility and better alignment across different entities, they would differ from the current parent-subsidiary structure.
For Bank Mandiri, a complete divestment of BRIS would mean fully removing BRIS from its financial statements. As of the first quarter of 2025, BRIS represented a significant portion of Bank Mandiri’s financials: 16.3% of total assets, 17% of total loans, 18% of deposits, and 7.3% of net profits. UOBKH estimates suggest that Bank Mandiri could even report losses from the transaction due to the absence of one-time gains. Similarly, BNI and BRI could also incur losses by forfeiting income from their investments and dividends from BRIS.
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