PT Bank Rakyat Indonesia Tbk (IDX: BBRI) injected Rp800 billion (US$57.14 million) into its newly subsidiary PT BRI Ventura Investama (BRI Ventures) - Photo by the Company

JAKARTA (TheInsiderStories) – The largest small and medium enterprises lender in the country, PT Bank Rakyat Indonesia Tbk (IDX: BBRI) injected Rp800 billion (US$57.14 million) into its newly subsidiary PT BRI Ventura Investama (BRI Ventures). By injected the capital, the bank’ stake in venture capital company increased from 97.61 percent to 99.96 percent.

Based on the information disclosure on the Indonesia Stock Exchange on Tuesday (07/30), the capital injections have been carried out on July 26. With these injections, the total capital of BRI Ventures worth of Rp1.01 trillion.

After the injection of the capital, the composition of shareholders in BRI Ventures consisted of Bank Rakyat Indonesia, PT Bank Central Asia Tbk (IDX: BBCA), Yayasan Kesejahteraan Pekerja BRI, and Rudolf Malo.

According to Bambang Tribaroto, the executive vice president at the bank, stated that the injection of capital was intended to strengthen the company’ capital in order to expand its unit business.

Last year, Bank Rakyat Indonesia has acquired 97.61 percent or 15,874 shares of BRI Ventures with costs Rp3.09 billion from PT Bahana Artha Ventura, subsidiary of PT Bahana Pembangunan Usaha Indonesia (BPUI). Then, the bank acquired two units of the state-owned financial company PT Danareksa.

The lender bought 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.

“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 director finance at BBRI Haru Koesmahargyo.

He added, BBRI the lender has allocated a fund of Rp6 trillion to support un-organic business, with Rp3 trillion to add subsidiaries’ capital and Rp3 trillion to acquire new companies.

The lender also intends to issue bonds of Rp20 trillion that will be divided into three times of issuance; the first year will be Rp7 trillion and Rp6 trillion will be in the second and third year. For this year, the company plans to issue a green bond of $500 million.

As the first quarter of 2019, the bank booked a net profit of Rp8.2 trillion, up to 10.43 percent from the first quarter of 2018. The profit was driven by loan growth by 12.9 percent and fee-based income growth by 16.49 percent.

The State Own Enterprises Ministry has plan to set up financial services holding led by PT Danareksa. A financial services holding company is one of the ‘holding master plans’ offered by the Government.

Gatot Trihargo, the deputy for the ministry has said the holding company was planned to be in charge of four state-owned banks, namely, Bank Rakyat Indonesia, PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Tabungan Negara Tbk (IDX:BBTN), PT Bank Mandiri Tbk (IDX:BMRI), and PT Pegadaian.

US$1: Rp14,000

Written by Lexy Nantu, Email: lexy@theinisiderstories.com