Indonesian Banks Scenarios of Bank Jago and BFI Indonesia

Research evidence excerpt

Indonesian Banks Scenarios of Bank Jago and BFI Indonesia

Global Research

13 July 2026ab

Indonesian Banks Equities

IndonesiaScenarios of Bank Jago and BFI Indonesia

Banks, Ex-S&L

Joshua Tanja, CFA

We ran four scenarios of Jago and BFI M&A Analyst

Bloomberg reported that investors led by Jerry Ng are evaluating options for stakes in BFI joshua.tanja@ubs.com

Finance (BFIN) and Bank Jago (ARTO), including a potential merger. Both companies +62-21-2554 7030

declined to comment. Mr. Ng is the common strategic investor across BFIN and ARTO, Ivan Reynaldo Sutheja

alongside Garibaldi in BFIN and GoTo and Patrick Waluyo in ARTO. While BFI and ARTO Analyst

are generating synergies, both stocks remain depressed, suggesting potential M&A ivan-reynaldo.sutheja@ubs.com

could unlock incremental value beyond business-as-usual synergies. Four scenarios are +62-21-2554 7037

highlighted: selling BFI and ARTO to a strategic buyer, an ARTO-BFIN merger, ARTO

acquiring BFIN, or BFIN acquiring ARTO. We maintain a SELL on BFIN due to concerns

over automotive NPL, while retaining a BUY on Jago, supported by strong loan growth

and rising NIM from its direct lending initiative.

Scenario 1: Selling both companies to a strategic buyer

Offering BFIN and Bank Jago as a bundled deal could enhance valuation through a

control premium and a two-in-one proposition. BFIN is a leading automotive finco with

>486k lending customers, 5% RoA, and 2.4x leverage, focused largely on the mass

market outside Java. Bank Jago is a top 3 digital bank with 24mn customers and

profitability. Together, they offer strategic buyers access to Indonesia’s under-banked

and mass market segments.

Scenario 2: BFIN and ARTO merger

BFIN’s finco structure provides flexibility that would be lost (potentially the finco license