Rumours of public takeover of Bank Central Asia shake businesses and markets
Indonesians are shocked and astonished by the possible move by the Prabowo administration, which is seeking a 51 per cent stake in the country’s largest private financial institution. Industry experts say plans appear to be ready. The institution offers a wide range of services for individuals and institutions. The news quickly shook the stock market.
Jakarta (AsiaNews) – The rumour mill has been working overtime since 18 August about a possible acquisition by President Prabowo Subianto's administration of a 51 per cent stake in PT Bank Central Asia Tbk. This possibility has sent shockwaves across the country.
Usually referred to as Bank Central Asia (BCA) and headquartered at the BCA Tower in Jakarta, it is the largest and most important credit institution in the country. Founded on 21st February 1957, it boasted assets exceeding 1,029.83 trillion rupiah (around US$ 68.5 billion) as of 2022.
The proposed takeover is linked to the Bank Indonesia (Central Bank) Liquidity Assistance (BLBI) case dating back to 1998 and a controversial divestment programme.
According to current reports from various business and financial media, the move appears to be already in its planning stage, and will most likely be done through the Investment Management Agency (BPI) Danantara Indonesia.
BCA is the largest private financial institution in Indonesia by market capitalisation, and the second largest by assets, with a huge branch network across the country.
In May 2021, it was named the world's best bank in Indonesia by Forbes, an international business magazine.
The institution offers a wide range of services, including transaction banking, corporate banking, commercial and SME banking, and consumer financing.
The bank is known for its strong market capitalisation and is partially controlled by the Dwimuria Investama Andalan Group, a state-owned cigarette manufacturer with a 54.94 per cent stake and a 45.06 per cent public shareholding.
The news quickly disrupted the stock market with BCA shares falling 10 per cent from the start of the year to 15 August 2025 period, closing at 8,700 rupiah, this despite the bank's solid performance with a net profit of 29 trillion rupiah (US$ 1.7 billion) in the first half of 2025, up 8 per cent year-over-year, with loans up by 12.9 per cent.
BCA's market capitalisation now stands at 1.062 trillion rupiah (US$ 65 million), making it the second-largest company listed on the Indonesian Stock Exchange (IDX).
The controversial issue was first raised by Sasmito Hadinegoro, chairman of the Institute for Economic and Financial Investigations (LPEKN), who called for full disclosure in the BLBI-BCA scandal.
Recently, Deputy Speaker of the House of Representatives, Ahmad Iman Syukri, backed the proposed takeover, although fellow lawmaker Tommy Kurniawan of the House Committee XI argued that the statement was misleading and potentially harmful to the country’s investment climate.
The government sold off BCA shares in 2005, based on two different factors. After the bank's collapse during the 1998 crisis, the Indonesian Bank Restructuring Agency (IBRA) controlled 92.8 per cent of its shares, subsequently selling them gradually through IPOs, SPs, and strategic placements. About 54.94 per cent of BCA shares are currently held by PT Dwimuria Investama Andalan, 42.46 per cent by the public, and the remainder by smaller investors.
Analysts warn that the 51 per cent acquisition proposed by the Subianto administration lacks a clear basis and risks undermining public trust.
“Any statement regarding a listed company must be based on valid data, as its impact is felt immediately by both investors and depositors,” said Hari Prabowo, director of LP3M Investa.
The government must react quickly to prevent rumours from spreading further, he noted. “The country must not be seen as seeking funds through instant measures that could destabilise the banking system,” he warned.
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12/11/2008
