JAKARTA, RAKYAT NEWS – The merger between PT Bank MNC Internasional Tbk (MNC Bank) and PT Bank Nationalnobu Tbk (Nobu Bank) has been delayed for two years, despite initial expectations that it would be completed by August 2023. The merger, which was first announced by Indonesia’s Financial Services Authority (OJK), has yet to be finalized, leading to questions about its progress and future prospects.

OJK has yet to confirm a specific timeline for the completion of the merger. Although earlier, the authority had indicated the possibility of enforcing a forced merger if the two banks failed to implement it, there has been no further action taken in this regard. As of now, negotiations between the shareholders of the two banks are still ongoing, with discussions focusing on business complexities and future synergies.

Dian Ediana Rae, Head of Banking Supervision at OJK, stated that the merger is a result of an agreement between the banks’ shareholders and remains under their jurisdiction. OJK continues to encourage corporate actions that contribute to the overall consolidation of Indonesia’s banking industry, but the authority has not provided a detailed update on the merger’s progress.

“The merger process is still ongoing, and the controlling shareholders of both banks continue to engage in negotiations,” said Dian in a written response. The discussions involve determining the ownership structure of the merged entity and ensuring the merger aligns with both banks’ future business strategies.

The delay has been attributed to the high level of complexity in the merger, with both banks being part of larger conglomerates. This complicates the integration process, especially as the banks look to develop synergies post-merger. Dian confirmed that OJK is closely monitoring the situation to ensure the commitment to the merger is upheld.

Despite the ongoing delays, OJK remains optimistic that the merger will eventually be completed successfully. In previous statements, Dian had mentioned that if significant obstacles arise, OJK could enforce the merger, though he expressed hope that such a measure would not be necessary. “If we encounter obstacles at some point, we will consider enforcing the merger,” he had said earlier in 2024.

Rita Montagna, President Director of MNC Bank, reaffirmed that the bank would follow OJK’s guidance regarding the merger. However, she did not provide specifics on the changes in management or board members once the merger is completed, highlighting that the direction will be determined by OJK’s policies.

The initial target for the merger between MNC Bank and Nobu Bank was set for August 2023, but after two years, no concrete progress has been made. OJK is committed to ensuring that the merger, when it happens, will be in the best interest of the banking industry and the economy at large.

As the merger process continues, all eyes remain on OJK’s next steps and whether the authorities will push for a resolution or impose a forced merger if the delay persists further. (Uki Ruknuddin)