JAKARTA (TheInsiderStories) – PT Bank Rakyat Indonesia Tbk (IDX: BBRI), one of the largest bank in the country, announced to acquires two unit of the state-owned financial company PT Danareksa as part of the lender business expansion.
According to the prospectus released on Friday (27/09), the bank will acquired 67 percent share of PT Danareksa Sekuritas for Rp446.88 billion and 35 percent of PT Danareksa Investment Management for Rp371.96 billion or in total worth of Rp818.84 billion (US$56.47 million).
“Investment in financial institutions is a part of the bank’s non-organic growth strategy that has been stated in the Business Plan 2018-2020 document,” said the bank in the prospectus.
One of the non-organic growth strategies is investment in non-bank financial institutions with products/services that are complementary to the Company’s products/services. This strategy is aimed to achieve the Company’s aspiration to provide integrated financial services to its customers.
The State Owned Enterprises (SOEs) ministry has plan to set up financial services holding led by Danareksa. A financial services holding company is one of the ‘holding master plans’ offered by the Government.
Gatot Trihargo, the deputy for the SOEs Ministry has told TheInsiderStories, the holding company was planned to be in charge of four state-owned banks, namely, BBRI, PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Tabungan Negara Tbk (IDX:BBTN), PT Bank Mandiri Tbk (IDX:BMRI), and PT Pegadaian.
Consolidation through the establishment of the holding will basically not eliminate the entity of each bank. The country’s banking regulator and the central bank have both been pushing for banks to merge, to shore up equity. The regulators want to halve the number of banks operating across the archipelago from around 120.
The four banks have, under an Association of State-Owned Banks Association, already merged their ATM networks and set up a single switching company to manage the system.