Home News Indonesia’s FSA Receives Kookmin Bank’s Commitment at Bank Bukopin

Indonesia’s FSA Receives Kookmin Bank’s Commitment at Bank Bukopin

The Financial Services Authority (FSA) had received a commitment from KB Kookmin Bank to continues to acquire a portion shares of PT Bank Bukopin Tbk' (IDX: BBKP) - Photo by the Company

JAKARTA (TheInsiderStories) – The Financial Services Authority (FSA) had received a commitment from KB Kookmin Bank to continues to acquire a portion shares of PT Bank Bukopin Tbk‘ (IDX: BBKP), said the agency. The largest financial group in South Korea currently has a 22 percent stake in the local lender.

In an official statement released on Thursday (06/11), the regulator said that Kookmin Bank was ready to become the sole controlling shareholder by taking ownership of at least 51 percent of the local bank’ shares.

According to the FSA, Kookmin Bank currently has provided a number of funds in the escrow account to strengthening the capital and the liquidity of the bank. Lately, Bank Bukopin become the subject of discussion in cyberspace caused the customers has difficulty to withdraw their funds.

Recently, Supreme Audit Agency reported seven bank have a capital problems, including Bank Bukopin. In recent days, FSA has do some effort to help the banks to overcome the problems use the latest regulation that allowed the regulator to merge or seeking new investors for the lenders.

The agency said, the South korean bank also open to increases the capital of the local lenders through another scheme. Kookmin Bank will hold the shares by absorbed 2.73 billion new shares (around 20 percent of paid up and enlarged capital) through rights issue program. The bank become a standby buyer for the stock issuances.

In 2018, the foreign lender bought 22 percent the local bank shares with worth of Rp1.55 trillion (US$110.71 million). The fourth largest bank in South Korea also was negotiated with PT Bosowa Corporindo to acquire its shares.

The publicly listed bank was established on July 10, 1970 with named Indonesia Cooperative General Bank. The company started is commercial business as cooperative general bank in Indonesia since March 16, 1971. In its development, the lender has merged with several cooperative general banks. The change of name from the old name  to Bank Bukopin was ratified in Jan. 2, 1990.

Currently, the bank’ operations are supported by more than 450 outlets in 23 provinces throughout Indonesia. Bank Bukopin has also built a micro banking network named “Swamitra”, which currently consists of 605 outlets, as a form of partnership program between the company and cooperatives.

In addition, the lender also has 862 Bukopin ATMs, besides its connection with more than 30,000 ATMs in national network, Plus network, and Visa International network worldwide. It also has two subsidiaries, namely PT Bank Syariah Bukopin and PT Bukopin Finance.

Bukopin Finance (formerly PT Indo Trans Buana Multifinance), established on March 11, 1983, is a company engaging in leasing and multi nance. While Bank Syariah Bukopin was established on July 29, 1990, and engages in Sharia-based banking.

US$1=Rp14,000

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