KONTAN.CO.ID - JAKARTA. PT Adira Dinamika Multi Finance Tbk or Adira Finance (ADMF) and PT Mandala Multifinance Tbk or Mandala Finance (ADMF) announced plans to merge the two entities on Wednesday (30/4).

This merger plan is part of the consolidation of the MUFG financial conglomerate in Indonesia. The two entities are two of the largest multifinance companies in Indonesia, with total cumulative assets (before the merger) of IDR 38.4 trillion.

This corporate action was conveyed as a strategic step supported by Mitsubishi UFJ Financial Group (MUFG), which is the parent company of Mandala Finance, and Adira Finance through its ownership in PT Bank Danamon Indonesia Tbk (Danamon).

This merger plan aims to strengthen Adira Finance's position in the Indonesian multifinance industry by expanding its distribution network, improving operational services, and providing more equitable and inclusive financing access for the Indonesian people from Aceh to Papua.

MUFG Bank and Adira Finance invested a total of IDR 7 trillion to take over 80.6% of Mandala Finance shares, with MUFG Bank and Adira Finance holding 70.6% and 10% ownership respectively. As of March 31, 2025, MUFG Bank owned 89.26% of Mandala Finance shares, and Adira Finance owned 10% of Mandala Finance shares.

Adira Finance President Director Dewa Made Susila explained that the company views Mandala Finance as having market share strength, especially outside Java.

"We are enthusiastic to combine this strength with our network, technology, and capabilities in providing broader and quality financial services. With full support from Danamon and MUFG," he wrote in an official statement, Wednesday (30/4).

On the other hand, Mandala Finance President Director Danny Hendarko said that his party welcomed the merger plan as a form of strategic transformation of Mandala Finance.

"By merging, we are optimistic that many new opportunities will open up for our customers, partners, and employees. Our current focus is to ensure that the transition process is smooth, transparent, and continues to prioritize the interests of all parties," he said.

Then, both managements said that the quality of service will be improved by strengthening the operational network, expanding the business, and developing technology and digital platforms.

The merger process is still awaiting approval from the relevant regulators, especially the Financial Services Authority (OJK), as well as shareholders who will be submitted through the Extraordinary General Meeting of Shareholders (EGMS) of each company. The merger plan is expected to be completed on October 1, 2025.

Throughout this period, the operations of both entities will continue as usual, and there will be no changes in customer service or cooperation with partners.

Customers can still access services through the branch office network, digital platforms, and other available service channels. Meanwhile, the entire merger process will be carried out in stages, professionally, and with the principle of open information.

Adira Finance and Mandala Finance management have also prepared a comprehensive communication plan to ensure that all stakeholders, including customers, employees, dealers, vendors, agents and other partners receive accurate and timely information.