Shinhan becomes 1st Korean financial group to establish holding company in Indonesia
Shinhan Financial Group Chairman Jin Ok-dong, fifth from left, poses with Shinhan executives and Indonesian financial officials during a launch ceremony for Shinhan Financial Group Indonesia in Jakarta, Monday. Courtesy of Shinhan Financial Group
Shinhan Financial Group has officially launched Shinhan Financial Group Indonesia, becoming the first Korean financial group to establish a local financial holding company in the Southeast Asian country, the company said Tuesday.
The launch ceremony was held in Jakarta on Monday, attended by Shinhan Financial Group Chairman Jin Ok-dong and local financial authorities.
The new structure places Shinhan Indonesia Bank at the center of the group's Indonesian operations, with the bank taking on the additional role of a holding company overseeing its local card and securities businesses.
The restructuring follows the Indonesian government's announcement requiring financial groups to establish holding companies in December 2024.
Shinhan began reorganizing its local governance structure in response to the requirement and received approval from Indonesian financial authorities in September 2025. The transition was completed on Sept. 16 following the transfer of stakes in the group's local affiliates, according to the company.
Under the new structure, Shinhan Indonesia Bank acquired additional stakes in Shinhan Indo Finance and Shinhan Investment Securities Indonesia from Shinhan Card and Shinhan Securities, respectively. The bank now holds 50 percent plus one share in each company, giving it majority ownership of the two affiliates.
The new structure is intended to strengthen coordination among Shinhan's Indonesian businesses and streamline decision-making process, the company said.
Shinhan has expanded its presence in Indonesia over the past decade and now has about 900 employees in the country.
Separately, Shinhan Financial Group signed a memorandum of understanding with Sinar Mas, one of Indonesia's largest conglomerates, to explore cooperation in corporate finance and supply chain finance.
The agreement is part of the financial group's efforts to diversify its business in Indonesia following the launch of the holding company structure.
"With the launch of the local financial holding company, we now have a framework to manage our Indonesian operations under a unified structure. And the memorandum of understanding is a new step toward expanding our business in the country," Jin said.
"Through our partnership with Sinar Mas, we aim to provide financial services tailored to local customers and contribute to economic development in both countries," he added.