Bank SMBC Indonesia has agreed to sell a pension-related loan portfolio worth nearly 19.9 trillion rupiah ($1.12 billion) to state-owned lender Bank Tabungan Negara (BTN), according to its filing with the Indonesia Stock Exchange on Monday.
The transaction, which comprises two separate asset transfer agreements, is valued at 46.3% of SMBC Indonesia’s equity as of end-2025. Under Indonesian capital market regulations, the deal does not require shareholder approval as its value remains below the 50% threshold.
Under a Conditional Portfolio Transfer Agreement (CPTA), SMBC Indonesia will transfer a 12.58-trillion-rupiah loan portfolio administered by TASPEN, the state pension administrator for civil servants.
Separately, under a Conditional Loan Asset Transfer Agreement (CLATA), the bank will sell loan assets managed by ASABRI, which administers pension and insurance benefits for members of the military and police, as well as other pension funds, and active employee loans, for 7.34 trillion rupiah.
“The CPTA and CLATA constitute a series of transactions to be carried out in an integrated manner,” SMBC Indonesia said in its disclosure, noting that each agreement governs different asset pools while remaining subject to a common set of completion requirements.
The transaction comes as SMBC Indonesia realigns its strategy around its pension business, which has historically been a key part of its retail banking franchise. The bank operates a dedicated pension business unit that serves major institutional pension fund partners and provides pension fund management, payment services, and lending products to retirees, pre-retirees, and active employees.
SMBC Indonesia said the asset transfer would help ensure service continuity for existing customers under BTN’s management while allowing the bank to redeploy capital and resources toward more scalable business segments and long-term growth priorities.
The bank added that it has “agreed to sell and transfer” the pension loan assets, while BTN has agreed to “purchase and receive” them under the terms of the respective agreements.
The board of directors and board of commissioners of SMBC Indonesia stated that the transaction “does not potentially disrupt the business continuity of the company” and does not constitute an affiliated-party transaction or involve any conflict of interest.
Formerly known as Bank Tabungan Pensiunan Nasional (BTPN), the lender merged with Bank Sumitomo Mitsui Indonesia in 2019 and adopted the SMBC Indonesia name in October 2024 as part of its integration with Japan’s Sumitomo Mitsui Banking Corporation group.
