JAKARTA, June 12 (Reuters) - Indonesia’s government has dropped a plan for PT Bank Mandiri to buy PT Bank Tabungan Negara (BTN), the chief economic minister said on Thursday.
Chairul Tanjung told reporters that the banks are not compatible enough for a merger.
“BTN as a bank that specialises in housing (loans) cannot be merged with a more commercial bank like Mandiri,” Chairul Tanjung said.
The cabinet secretary in April had called for a delay in the planned acquisition, sending BTN’s share price down sharply.
State-Owned Enterprises Minister Dahlan Iskan in April said the acquisition would support the demand for mortgages in Southeast Asia’s biggest economy and create a more regionally competitive bank. (Reporting by Fathiyah Dahrul and Fergus Jensen; Writing by Eveline Danubrata)