According to the the Indonesian capital market supervisory agency, DBS needs to sell down their stake to 80% after buying up Bank Danamon. They will have a period of up to 2 years to do this and another 2-year extension if their investment is at a loss greater than 10%.
This is similar to the case of Maybank buying PT Bank International back in 2008. The deal then went through hiccups as the Indonesia regulators canned the deal close to the end of the tender offer before allowing it to go through in the end.
I would expect there would be discussions between the 2 countries, Indonesia and Singapore, before and after this deal was announced. Given the proximity and relationship between the two countries and how Temasek is invested in assets in Indonesia, I would expect this deal to go through.
Again this is not the largest bank in Indonesia, it is the sixth largest bank.
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