Indonesia’s Deposit Insurance Agency Seeks Investors for Troubled Banks, Opens Door to Acquisitions and Mergers

Indonesia’s Deposit Insurance Corporation is preparing to become a matchmaker for troubled banks, offering them to potential investors rather than sending them straight into liquidation.

LPS Chairman Anggito Abimanyu said the agency now has a new investor-relations function. Its role includes identifying parties that might be interested in taking over banks that remain licensed and have capital but face problems such as weak governance or insufficient funds.

“

So it will not only be liquidation, but we will also create something like investor relations, where we also offer troubled banks.

“So it will not only be liquidation, but we will also create something like investor relations, where we also offer troubled banks,” Anggito said at the Lampung Financial Festival 2026 in Bandar Lampung on Friday evening, Sept. 4.

The search will not be limited to new investors. Existing investors in the banking sector could also acquire a troubled bank or combine it with another institution. “Finding investors does not have to mean new investors. It can also involve existing investors, in case someone wants to acquire or merge,” Anggito said.

“

Finding investors does not have to mean new investors. It can also involve existing investors, in case someone wants to acquire or merge.

LPS said the approach could also apply to regional development banks, known as BPDs, as well as conventional and sharia rural banks. Anggito suggested that rural banks owned by district or city governments could potentially be acquired by regional banks with stronger capital positions.

He described the mechanism as relatively new for LPS and said the agency would continue looking for interested investors. Asked about 13 banks previously handled by LPS, Anggito said the search was still under way: “No, we are just continuing to look.”

“

No, we are just continuing to look.