Partnership with Sinar Mas Targets Corporate and Supply Chain Finance Growth
Shinhan Financial Group has reorganized its Indonesian operations under a local financial holding company structure, strengthening its foothold in Southeast Asia and laying the groundwork for further business expansion.
The group announced on October 13 that Shinhan Indonesia Bank had transitioned into a business holding company, officially launching Shinhan Financial Group Indonesia. The move marks the first establishment of a local financial holding company in Indonesia by a South Korean financial group.
The restructuring began in December 2024 following Indonesian financial regulators’ requirement for financial holding company structures. After receiving regulatory approval in September 2025, Shinhan completed the necessary share transfers and related procedures on September 16, with support from the Korean Embassy in Indonesia and the Korea-ASEAN Financial Cooperation Center.
As part of the reorganization, Shinhan Indonesia Bank acquired additional stakes in Shinhan Indo Finance and Shinhan Investment Securities Indonesia, previously held by Shinhan Card and Shinhan Securities, respectively. The bank now holds 50% plus one share in each company, positioning it as the central entity overseeing the group's local financial businesses.
Over the past decade, Shinhan has expanded its Indonesian operations into a comprehensive financial group employing approximately 900 people. Through the new holding company structure, the group plans to strengthen collaboration among its subsidiaries, streamline decision-making and improve operational efficiency.
An inauguration ceremony was held in Jakarta on October 12, attended by Shinhan Financial Group Chairman Jin Ok-dong and key representatives from Indonesian financial authorities. Participants celebrated the launch and discussed the vision for the newly established entity.
On the same day, Shinhan Financial Group signed a memorandum of understanding with Sinar Mas Group, Indonesia's fourth-largest business conglomerate, to explore new growth opportunities in the local market.
The partnership will focus on corporate finance and supply chain finance, combining Sinar Mas's extensive industrial network with Shinhan's financial expertise. The two groups aim to identify new business opportunities and deliver differentiated financial services to local customers.
The agreement represents part of Shinhan's broader strategy to diversify its Indonesian operations following the launch of the holding company. By working with a major local business group, Shinhan expects to expand its corporate client base and develop additional revenue streams.
Jin said the new holding company provides a foundation for managing Shinhan's Indonesian businesses under an integrated framework. He added that cooperation with Sinar Mas would help the group deliver greater value to local customers while contributing to economic development in both South Korea and Indonesia.
The restructuring is expected to strengthen coordination across Shinhan's Indonesian subsidiaries and improve its ability to respond to local market demand. As competition and demand for specialized financial services evolve across Southeast Asia, Shinhan plans to leverage its integrated operating structure and strategic partnerships to pursue further growth in Indonesia.
