South Korea Bank, Kookmin Bank has the opportunity to become the majority shareholder with ownership of more than 40 percent at PT Bank Bukopin Tbk (IDX: BBKP) - Photo by the Bank

JAKARTA (TheInsiderStories) – South Korean lender, Kookmin Bank, get a blessed from Indonesian Financial Service Agency to become major shareholder of medium lender, PT Bank Bukopin Tbk (IDX: BBKP), the official told TheInsiderStories today (11/02). Based on the rule, foreign bank allows to have 40 percent of local bank and need the authority approval if wants hold over the limit.

In 2018, South Korean bank bought 22 percent shares of Bank Bukopin with worth of Rp1.55 trillion (US$110.71 million). The other shares owned by Bosowa Corporation 23 percent, Indonesian government 8.92 percent, Employee 6,62 percent, and public 39,07 percent.

According to the FSA’ chief, Heru Kristiyana, at present, Kookmin Bank is negotiating with Bosowa to acquire its shares. If the lender wants to increase its ownership above 40 percent, he said, they must obtain permission from the agency.

The company now in the process to release 2.73 billion shares or 30 percent of enlarged and paid up capital with offering price Rp570 a share. Eko Rachmansyah Gindo, the president director revealed, the right issue aims to improve its capital adequacy ratio to 14 percent, from now at 13.48 percent.

Recently, Bank Bukopin was suspected to providing misleading information related to the company’ financial statements. This include inaccuracies in reporting credit card receivables. The financial statement discrepancies were responded negatively by investors with the decline in the price of the shares of the lender.

The lender posted poor performance since last year, with profit Rp150.84 billion in the third quarter of 2019 from Rp137.15 billion in prior year. This year the bank its expecting the net profit could reached Rp400 billion.

Bank Bukopin 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. The company 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, Bank Bukopin also has 862 Bukopin ATMs, besides its connection with more than 30,000 ATMs in national network, Plus network, and Visa International network worldwide.

The bank 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