PT Bank Central Asia Tbk (IDX: BBCA) plans to cooperate with Chinese financial technology (FinTech) companies, Alipay and WeChat Pay, the official told to the media on Tuesday (10/29) - Photo by the Company

JAKARTA (TheInsiderStories) – One of the largest lender in Indonesia, PT Bank Central Asia Tbk (IDX: BBCA) plans to cooperate with Chinese financial technology (FinTech) companies, Alipay and WeChat Pay, the official told to the media on Tuesday (10/29). Beside BBCA, the digital firms also explore another bank in the country.

The bank’ president director Jahja Setiaatmadja explained, now, the third parties in the process of finalize the business processes and schemes. While, Vera Eve Lim, finance director, the finance director stated, the company will provide electronic data capture (EDC) to manage and process the transactions. The machine will be placed in merchants around tourist objects that Chinese tourists frequently visited, she adds.

Since early of 2019, Bank Central Asia has announced looking digital companies as part of the business expansion and to tap the growing market. Joined with its subsidiary PT BCA Finance, the bank has entered into a sale and purchase agreement to buy all of PT Bank Royal Indonesia shares with valued Rp1 trillion (US$71.42 million).

Setiaatmadja said, the new subsidiary will transform become P2P lending provider. To add the service, BBCA also looking other digital companies or in cooperation scheme.

In the third quarter (3Q) of 2019, the lender recorded a net profit of Rp20.9 trillion, an increase of 13 percent in annual basis (YoY). In line with the net profit growth, net interest income also rose 12.2 percent to Rp37.4 trillion from a year ago.

At the same time, the loan disbursement increased by 10.9 percent in the 3Q of 2019. The bank was able to record deposits growth of 10.4 percent to Rp683.1 trillion.

The lender also maintained a solid financial ratio. Capital adequacy ratio (CAR) and loan to deposit ratio (LDR) recorded at 23.8 percent and 80.6 percent, respectively. While, return to assets (ROA) recorded at 4 percent.

Alipay and WeChat Pay have been operating in the country and become illegal caused not meet the central bank’ requirement. Bank Indonesia has put a 49 percent limit on foreign ownership in companies that offer e-money services in a bid to better regulate such services amid growing interest in financial technology.

The limit was set by central bank to all electronic money issuer companies, both operating and newly handing permits. The rules said, every company offering payment in electronic money services also must obtain a permit from BI.

Beside explore with BBCA, both digital players also explore the cooperation with PT Bank Negara Indonesia Tbk (IDX: BBNI) and PT Bank Mandiri Tbk (IDX: BMRI). The partnering has potential to attract revenues around Rp2 trillion (US$141.84 million) from Chinese tourists who visit the country.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com