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Mitsubishi UFJ Financial Group Inc. is considering a bid for PT Bank Pan Indonesia, 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.

Shares in Panin Bank reversed losses to climb as much as 4.3% following the Bloomberg News report. The stock has more than doubled this year, giving the lender a valuation of about $3.1 billion.

MUFG’s interest in Panin Bank comes as the Gunawan family, which controls about 46% of shares in the Southeast Asian bank, is also working with a financial adviser to explore options for its stake, the people said.

The biggest shareholder has received preliminary interest from buyers, which include other regional lenders keen to expand in Southeast Asia as well as local investors, they 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.

Australia and New Zealand Banking Group Ltd., which holds about 38.8% of the shares in Panin, is also weighing reviving options for its stake including a sale, Bloomberg News has reported.

The Gunawan family’s reluctance to give a board seat to an incoming investor had stymied ANZ’s earlier negotiations with suitors, Bloomberg News reported in 2015.

Japanese lenders have been keen buyers of assets across Asia in recent years as they seek to expand in new markets amid low interest rates and sluggish growth at home.

Over the last decade, MUFG has expanded in Southeast Asia via mergers and acquisitions in markets such as Indonesia, the Philippines and Thailand.