Jakarta. The Jakarta administration plans to retain a controlling stake in Bank Jakarta when the regional lender goes public, with an initial public offering (IPO) targeted for the first half of 2027.

Governor Pramono Anung said on Friday the city government must remain the bank's majority shareholder even as it prepares to sell shares to public investors, emphasizing that government control over the lender is nonnegotiable.

The ownership requirement will be incorporated into a draft regional regulation proposed by the administration to ensure that Bank Jakarta remains under Jakarta's control following its stock market debut.

"There is no room for management or authority to be transferred to any other party. I will not allow that," Pramono said.

He stressed that both Bank Jakarta and the city-owned drinking water company PAM Jaya must remain under the Jakarta administration, underscoring his commitment to maintaining public control over strategically important regional enterprises.

However, the precise ownership structure for Bank Jakarta's planned IPO has yet to be finalized.

"The final decision will be made after this receives approval through the regional regulation. Therefore, we are waiting for the regulation," Pramono said.

The proposed regulation will provide a legal framework for determining the administration's ownership position before the bank proceeds with its public offering.

IPO to Support Capital Expansion
Bank Jakarta previously announced plans to launch its IPO in the first half of 2027 as part of a broader strategy to strengthen its capital base, improve corporate governance and increase transparency through public market oversight.

The planned listing is also expected to support the bank's ambition to enter the Bank Based on Core Capital (KBMI) 3 category, which covers lenders with core capital of between Rp 14 trillion and Rp 70 trillion ($782.5 million to $3.9 billion).

As of June 2026, Bank Jakarta reported core capital of Rp 10.97 trillion on a standalone basis and Rp 12.59 trillion on a consolidated basis.

Based on the consolidated figure, the bank would need an additional Rp 1.41 trillion in core capital to reach the Rp 14 trillion threshold, assuming no other changes to its capital position.

The planned IPO could provide an opportunity to raise fresh funds while introducing greater market scrutiny of the bank's financial performance and management.

However, the amount of capital raised and the proportion of shares offered to public investors will depend on the final IPO structure, which remains subject to regulatory approval and the Jakarta administration's ownership requirements.

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