Photo: Yonhapnews

JAKARTA (TheInsiderStories)  – Korea Investment & Securities Co. (KIS), a leading brokerage in South Korea has acquired an Indonesian securities firm PT Danpac Sekuritas as part of its efforts to strengthen its overseas business.

It signed a contract to take a 75 per cent stake in Danpac Sekuritas for 40 billion won (US$36.6 million), KIS said on Dec. 12. The company said the latest purchase is a step toward to its long-term plan to become Asia’s biggest investment bank.

Since 2014, KIS has talks with several local parties as their potential partner in entering the securities business in Indonesia. According to Branch Head of Korea Investment & Securities in Indonesia Nam Kyoung his company is very enthusiastic to get into Indonesia because the market is very potential when viewed from the population and the growth of its economy.

The company said its Indonesian operations are expected to start the business within the first half of next year once it has obtained approval from the financial authorities.

Before KIS, other South Korean firm, PT KDB Daewoo Securities Indonesia is very serious about developing its securities business in Indonesia. According to KDB Daewoo President Director Kibum Bim, the people of Indonesia still have not understood the capital market. Whereas Indonesia capital market has good potential.

Indonesian capital market conditions making securities firms optimistic this year’s performance can go faster. Plus, Standard & Poor’s rating gifts are also a positive catalyst for the bond and stock market.

Prama Nugraha, Director of PT Panin Sekuritas said that the market condition in this year is better than the same period last year. At least, although it has been anticipated by investors, the long-term rating gap can affect the market condition.

He was also optimistic, until the close of 2017 Jakarta Composite Index closed at 6,000 numbers. So that later enough impact on securities business this year.

Similarly, PT Indo Premier Sekuritas was quite confident this year will be much better than the market conditions last year. Moleonoto, President Director of Indo Premier Sekuritas, said that the largest contribution to the company’s revenue is still from retail investors.

Over the next few years, Indo Premier is focused on developing mutual fund distributions. It believes, the prospects of this business will be large enough.

Written by Linda Silaen, Email: linda.silaen@theinsiderstories.com