Mitsubishi UFJ Financial Group is exploring options for PT Bank Danamon Indonesia, including taking the lender private or selling some of its stake to increase the public float, people with knowledge of the matter have said.

Japan＊s biggest financial institution is working with an adviser on a plan, the people said, asking not to be identified because the deliberations are private and there＊s no certainty of a deal.

A spokesperson for Tokyo-based MUFG declined to comment.?Danamon said it＊s examining new regulations and will follow up accordingly to ensure compliance.

Earlier in 2026, Indonesia gave listed companies up to three years to increase their public floats as part of reforms to boost transparency. MUFG owns about 92.5% of Danamon, which has a market value of almost 47 trillion Indonesian rupiah ($2.6 billion), data shows.?Danamon shares fell as much as 3.5% Tuesday, before paring some losses.

MUFG said in April that it was aware of the new free float rules and speculation on taking Danamon private, but that nothing had been decided. The Indonesian lender＊s shares soared in April following media reports on a possible deal, almost doubling their gain this year.

MUFG agreed in 2017 to buy an initial stake in Danamon from Singapore state investor Temasek Holdings and affiliates, aiming to expand its presence in Indonesia. The Japanese lender then sought permission to increase its stake from authorities, who were then welcoming to such foreign investments, partly to encourage consolidation in the banking sector.

In 2019, MUFG said it had to book a $1.9 billion impairment charge for its Danamon stake after the Indonesian bank＊s shares plunged when MSCI removed it from its indexes, following the takeover that resulted in a thin free float. MUFG later posted its first quarterly loss in a decade and cut its annual profit forecast after accounting for the hefty charge.

Danamon was established in 1956, and with subsidiary Adira Finance managed 275.7 trillion rupiah of assets at the end of 2025, its website shows.