Shinhan Launches Financial Holding Company in Indonesia

Shinhan Financial Group has restructured its operations in Indonesia by establishing a local financial holding company, marking the first of its kind in the country for a South Korean financial entity. This move, announced on October 13, was prompted by Indonesian financial regulators' mandate for such structures. The reorganization culminated in September 2025 after obtaining regulatory approval in September of the same year.

Following this, Shinhan completed necessary share transfers and related processes, assisted by the Korean Embassy and the Korea-ASEAN Financial Cooperation Center.

The restructuring integrated Shinhan Indonesia Bank into a new financial holding company, Shinhan Financial Group Indonesia, which now holds majority stakes (50% plus one share) in two subsidiaries: Shinhan Indo Finance and Shinhan Investment Securities Indonesia. These were previously owned by Shinhan Card and Shinhan Securities respectively. This centralization aims to enhance collaboration among subsidiaries, streamline decision-making, and boost operational efficiency.

Shinhan has been expanding its footprint in Indonesia over the past decade, now employing around 900 individuals. With the new holding company structure, the group intends to bolster collaboration, improve decision-making processes, and enhance operational efficiency. An inauguration ceremony was held in Jakarta on October 12, with Shinhan Financial Group Chairman Jin Ok-dong and key Indonesian financial officials in attendance.

They celebrated the launch and deliberated on the vision for the newly established entity. Additionally, the same day, Shinhan signed a memorandum of understanding with Sinar Mas Group, Indonesia's fourth-largest conglomerate, to explore new growth opportunities in the local market. The focus will be on corporate and supply chain finance, leveraging Sinar Mas's industrial network alongside Shinhan's financial expertise.

This partnership aligns with Shinhan's strategy to diversify its Indonesian operations, aiming to broaden its corporate clientele and introduce new revenue streams.

Jin Ok-dong emphasized that the new holding company framework provides a solid foundation for managing Shinhan's Indonesian businesses under an integrated framework. He further highlighted that collaboration with Sinar Mas would enable the group to deliver greater value to local customers and contribute to economic development in both countries.

The restructuring is anticipated to enhance coordination across Shinhan's Indonesian subsidiaries, allowing it to better respond to local market demands. As competition grows and demand for specialized financial services increases across Southeast Asia, Shinhan plans to utilize its integrated operating structure and strategic partnerships to pursue further expansion in Indonesia.