Top Banks in Indonesia
Marcopolis.net has compiled the ranking of the top banks in Indonesia. View the latest list of the largest banks in Indonesia. The largest bank in Indonesia is PT. Bank Mandiri Tbk.
Top Banks in Indonesia
Indonesia’s Banks
This is the list of the largest banks in Indonesia, as measured by total assets. Marcopolis.net compiles the ranking of Indonesia’s largest banks for 2016. Following are the largest banks in Indonesia by assets. PT. Bank Mandiri Tbk is currently the largest bank in Indonesiai by assets, followed by PT. Bank Rakyat Indonesia Tbk, which is the second largest bank in Indonesia.
There are over 120 commercial banks in Indonesia (4 of them being state owned banks). Two of the state owned banks have Islamic banking units and there are five Islamic commercial banks
Indonesian banks have faced many challenges in the last years. Weak volatility in the global market has led to a reduced demand for loans. Therefore banks need to focus on improving asset quality and not on boosting loan growth and profitability. Focusing on sectors related to government projects such as infrastructure could be the answer for most Indonesian banks.
Bank Indonesia targets loan to grow 12 percent in 2016, expecting consumption demand to recover in the second half of 2016. To support economic growth BI has loosened monetary policy since the start of this year, among other things BI cut the policy rate by 125 basis points (bps) from 7.75 percent to 6.50 percent from January to June.
These challenging conditions have forced banks to operate more efficiently by pushing down their overhead costs. If banks can operate more efficiently, they will be able to improve their profitability. Furthermore, banks need to improve their standard procedures in disbursing loans to stop the NPL ratios increasing any further. Still, the Indonesian banking sector still has plenty of room to grow.
According to Bank Indonesia, the country’s central bank, Indonesia is home to the world’s largest retail Islamic banking market, with 17.3 million customers, 2,990 bank offices, 1,267 Shariah-compliant products and 43,000 employees as of 2013.
Indonesia’s banking system is the 12th-largest in the Asia-Pacific region, with total bank assets of US$444.21 billion at the end of February 2015, based on estimates by The Economist Intelligence Unit Ltd. The country’s bank assets represent about 40% of its nominal GDP, a low level compared to its regional peers. The Philippines holds bank assets equivalent to about 80% of its nominal GDP, while in Malaysia holds up to 250%.
However according the Indonesian Financial Services Authority, the country’s commercial and regional banks have grown considerably over the past six years, with their aggregate assets amounting to 5.705 quadrillion rupiah, compared to 2.343 quadrillion rupiah in 2008.
The List of Top Banks in Indonesi
| Rank | Company | Country | Industry | Assets | Description |
|---|---|---|---|---|---|
| 1 | Indonesia | Banking/Banks | Rp 825.41 trillion | PT Bank Rakyat Indonesia (Persero) Tbk. is the oldest and largest bank by assets in Indonesia. Its history was started back on 16 December 1895, when Raden Bei Aria Wiraatmaja founded a small financial institution. It is currently one of the largest Indonesian companies in terms of market capitalization. The company operates seven levels of service offices, consisting of its head office, 18 regional offices, 446 branch offices (including three overseas offices), 545 sub-branch offices, 914 cash offices, 5,000 BRI units, 1,778 sub-micro outlets, and 350 mobile BRI outlets. | |
| 2 | Indonesia | Banking/Banks | Rp 820.03 trillion | PT Bank Mandiri Tbk is Indonesia’s second largest financial institution by assets. The Bank was established as a consequence of the Asian Financial Crisis, when the Indonesian financial sector had collapsed in the late 1990s and as part of the government’s bank restructuring program four state-owned banks, Bank Exim, Bank Bumi Daya, Bank Dagang Negara and Bapindo, were merged into Bank Mandiri. | |
| 3 | Indonesia | Banking/Banks | Rp 605.75 trillion | PT Bank Central Asia Tbk (BCA) is Indonesia’s 3 largest bank in assets and its largest lender by market value. BCA is partly controlled by one of Indonesias most renowned and sizable conglomertes,the Djarum Group. It provides both commercial and personal banking services through it’s over 1000 branches in Indonesia. | |
| 4 | Indonesia | Banking/Banks | Rp 479.06 trillion | Bank Negara Indonesia is a State Owned Enterprise (SOE). IT was founded on 1946, making it the oldest commercial bank in Indonesia.State-owned Bank Negara Indonesia, the fourth-biggest lender by assets, saw the biggest bank-only asset growth in the period, the lenders latest report to central bank Bank Indonesia, showed. BNI’s asset, excluding those of its units, grew 26 percent to Rp 479.06 trillion ($36.32 billion) compared to the same period a year earlier. | |
| 5 | Indonesia | Banking/Banks | Rp 229.75 trillion | CIMB Group is Indonesias fifth largest bank in terms of assets, Malaysia’s second largest financial services provider and one of ASEAN’s leading universal banking groups. Also, with 11% of market share, CIMB Niaga is the third largest mortgage provider in Indonesia. As at 30 June 2015, the Group had a market capitalization of USD46.4 billion and about 44,000 employees located in 17 countries. CIMB Niaga was established as Bank Niaga in 1955. CIMB Group holds around 97.9% of the stakes in CIMB Niaga (including PT Commerce Kapital 1.02%). The Bank offers a comprehensive suite of both conventional and Islamic banking products and services, through an expanding delivery channel network of 919 network channels all over Indonesia as at 30 June 2015, including 563 branches, 271 Mikro Laju units, 65 cash/payment points, 20 mobile branches and over 15,000 employees. | |
| 6 | Indonesia | Banking/Banks | Rp 180.59 trillion | Bank Tabungan Negara, the country’s largest mortgage lender, came in second with 18 percent growth of its bank-only assets to Rp 180.59 trillion in May compared to the same period a year earlier. As a Bank focusing on housing finance, its position raised to sixth from the ninth position a year earlier. | |
| 7 | Indonesia | Banking/Banks | Rp 175.98 trillion | As of June 2009, Panin Bank listed as the 7th largest bank in Indonesia in terms of total assets Rp.71,2 trillion, with capitalization reached Rp. CAR 9.8 trillion and 23.9%. In the latest development, Panin Bank have to install the best core banking system and implement internal governance process that is new, and effectively utilize IT systems in order to address the growing demands of the Bank continues to show a solid performance. Panin Bank currently listed as the 7th largest bank in Indonesia in terms of asset that by the end of 2015 reached Rp175.98 trillion. Bank Panin thanks to its branch network that continues to grow and has now over 600 branches and 1000 ATMs, with a business network of more than 500 offices in various major cities in Indonesia and more than 18,500 ATMs ALTO and ATM Bersama network, Internet Banking, Mobile Banking, Phone Banking and Call Centre as well as debit cards in collaboration with MasterCard, Cirrus, Maestro accessed internationally. |
|
| 8 | Indonesia | Banking/Banks | Rp 174.45 trillion | Permata Bank is the 8th largest bank in Indonesia in assets and with its core strength on the combination of its strategic partners such as PT Astra International Tbk, one of the largest Indonesian groups with an extensive knowledge in the domestic market and Standar chartered Bank, a well-respected international bank with a global experience, Bank Permata couns with a series of competitive advantages that make it a high potential bank in Indonesia and in ASEAN. PT Bank Permata Tbk (PermataBank) is the result of a merger of 5 (five) banks, PT. Bank Bali Tbk, PT. Bank Universal Tbk, PT. Bank Prima Express, PT. Bank Artamedia and PT Bank Patriot in 2002, and today has grown into a major private bank that offers products and services, innovative and comprehensive delivery channels including Internet Banking and Mobile Banking. PermataBank has a focus on Consumer and Commercial segment. Serving approximately 2 million customers in 60 cities in Indonesia, as per July 2014 the Bank has 329 branches (16 sharia & 313 convensional branches), 20 Mobile Branches, tree Payment Point, 940 ATM with additional access at more than 69.000 ATMs (VisaPlus, Visa Electron, MasterCard, Alto, ATM Bersama and ATM Prima) and millions of ATMs around the world are connected to the network Visa, Mastercard and Cirrus. | |
| 9 | Indonesia | Banking/Banks | Rp 146.85 trillion | PT Bank Danamon Indonesia Tbk. is an Indonesian bank established in 1956. It is the ninth largest bank of Indonesia by asset size Bank Danamon was established on July 16, 1956 under the name of PT Bank Kopra Indonesia. In 1976 the bank’s name was changed to PT Bank Danamon Indonesia. Bank became the first bank that pioneered the exchange of foreign currency in 1976 and listed its shares on the stock exchange since 1989. As of 30 June 2016, Danamon managed IDR 175 trillion in assets, supported by around 1,900 conventional, Danamon Simpan Pinjam, Danamon Syariah and Adira branches and outlets. Danamon has a network of more than 1,454 ATMs and 70 CDMs, providing customers further access through thousands of ATMs through the ATM Bersama, ALTO, and Prima networks in 34 provinces across Indonesia. 67.37% Danamon shares are owned by Asia Financial (Indonesia) Pte. Ltd., 6.69% owned by JPMCB-Franklin Templeton Investment Funds, and the remaining 25.94% owned by the general public. | |
| 10 | Indonesia | Banking/Banks | Rp 149.31 trillion | Maybank Indonesia is currently one of the largest banks in Indonesia that connected to regional and international network of Maybank Group. As of 31 December 2015 Maybank Indonesia has 456 branches, including shariah branches and micro functional offices spread across Indonesia, two overseas branches (Mauritius and Mumbai, India), 17 Mobile Cash Vehicles and 1,605 ATMs including CDMs (Cash Deposit Machine) which all connected to more than 20,000 ATMs of the ATM PRIMA, ATM BERSAMA, ALTO, and CIRRUS networks and to 3,500 Maybank ATMs in Singapore and Malaysia through MEPS network. With over 6 million clients and rakings such as, number 10 in terms of assets, number 10 in terms of loans and number 9 in terms of deposits, Bank Maybank is clearly one of the top banks in Indonesia with a high potential to be one of the top 10 banks in ASEAN. | |