Mitsubishi UFJ Financial Group, Inc. (TSE:8306) is considering a bid for P.T. Bank Pan Indonesia Tbk (IDX:PNBN), people familiar with the matter said, as the Japanese banking giant seeks to bolster its presence in Southeast Asia's biggest economy. The Tokyo-based bank is working with a financial adviser as it explores a deal to acquire a stake in the Indonesian lender, the people said, asking not to be identified because the matter is private. MUFG could propose combining Panin Bank, as the Jakarta-based lender is known, with its local unit PT Bank Danamon Indonesia as part of the deal, the people said.

Considerations are preliminary and the firms could decide against a transaction, the people said. There's no information from the controlling shareholders to the management until now, Bank Pan Indonesia President Director Herwidayatmo said in a text message in response to a Bloomberg News query. A representative for MUFG declined to comment, while the Gunawan family did not respond to queries emailed to affiliated companies PT Paninvest and PT Panin Financial.