Shinhan Financial Group has reorganised its governance in Indonesia into a business holding company structure, grouping its local card and securities affiliates around its local bank. It aims to unify cooperation and decision-making among local financial affiliates and expand new businesses such as corporate finance and supply chain finance with Indonesia's conglomerate Sinar Mas group.

Shinhan Financial said on Oct. 13 it converted Shinhan Indonesia Bank into a business holding company that also serves as a financial holding company, and launched "Shinhan Financial Group Indonesia". It said this is the first time a South Korean financial group has built a local financial holding company structure in Indonesia.

The governance overhaul was 추진됐다 in line with an Indonesian financial authorities requirement, introduced in December 2024, to set up financial holding companies. Shinhan Financial said it received approval from local financial authorities in September last year and completed the conversion on Sept. 16 after follow-up procedures such as share transfers.

As a result, Shinhan Indonesia Bank acquired Shinhan Indofinance and part of Shinhan Investment & Securities' stake in Indonesia, which had been held by Shinhan Card and Shinhan Investment & Securities. It currently holds 50 percent plus 1 share in each of the two entities.

Shinhan Financial plans to establish a management system for its card and securities affiliates centred on its local bank to boost cooperation and improve decision-making efficiency among affiliates. About 900 employees currently work at its local financial affiliates in Indonesia.

Shinhan Financial held a launch ceremony for "Shinhan Financial Group Indonesia" in Jakarta on Oct. 12. Shinhan Financial Chairman Ok-dong Jin (진옥동) and officials from Indonesian financial authorities attended.

It also signed a business agreement with Indonesia's conglomerate Sinar Mas group on the same day. The two companies plan to cooperate mainly in corporate finance and supply chain finance and seek new business opportunities linking Sinar Mas' local industrial network with Shinhan Financial's financial businesses.

Jin said, "With the launch of the financial holding company, we now have a foundation to operate our local business in Indonesia under a single system." He said, "With cooperation with Sinar Mas group as a starting point, we will expand our local business."