KONTAN.CO.ID - JAKARTA. With the economy recovering after the pandemic, the multi-finance business in Indonesia seems to be the target of foreign investors. This can be seen from several acquisitions by foreign investors of multi-finance companies.

Although based on OJK records, there are still 25 finance companies from 152 finance companies that still do not meet the provisions related to capital. Chairman of the Association of Financing Companies (APPI) Suwandi Wiratno said that attracting investors is one of the strategies for financing companies to increase capital. In addition, investors also see the potential for the financing business to be very prospective in Indonesia.

"Regarding finance companies that don't have capital, he added capital by attracting investors, that's true. I think that's one of their strategies. If you ask there are still many investors who are interested, yes, we can still see transactions of changes in shareholders which are foreign or there are locals who really want to enter the financing company, there are still there," explained Suwandi to kontan.co.id, Tuesday (28/6).

Previously, the Head of the OJK 2B Non-Bank Financial Industry Supervision Department, Bambang W. Budiawan, said that there are still several multi-finance companies that are likely to be annexed by foreign investors this year. "Maybe this semester there will be 2 to 3 financing companies," said Bambang.

Seeing this phenomenon, Bambang believes that these foreign investors see the potential for the financing business to be very prospective in Indonesia. One of them could be caused by the relatively fast process of post-pandemic economic recovery. Besides that, Indonesia is a populated country, so it is not wrong if their assessment sees that the market in Indonesia is still promising.

One of the multi-finance companies that has announced that it will be acquired by foreign investors is Batavia Prosperindo Finance. Meanwhile, a company from South Korea, Woori Card Co., Ltd., will become the new controller after buying the issuer's shares of around Rp. 1 trillion.

Woori Card will buy 82.03% shares or the equivalent of 2.19 billion shares. Meanwhile, 74.22% of the shares belong to PT Batavia Prosperindo Internasional Tbk (BPII) and the rest belongs to several other unspecified shareholders.

The approval of Woori's acquisition of BPFI will be held at the upcoming EGMS. the company's shares plans to hold an EGMS related to the plan to take over most of the shares issued and paid up in the company.

President Director of Batavia Prosperindo Internasional (BPII) Rudi Setiadi, as the controlling shareholder, stated that the aim of the sale with a value of at least Rp. 1 trillion is to improve financial performance by investing in various financial instruments that can provide additional income from investment returns.

"In addition, the company can focus more on business development in its subsidiaries in the business fields of Investment Manager, General Insurance, and Transportation Services, as well as see the potential for new businesses that can increase the company's value in the future," he explained.

Previously, there was also a company from Singapore Honest Financial Technologies International Private Limited (Honest) which also acquired a multi-finance company owned by Permata Bank, PT Sahabat Finansial Keluarga, which has now changed its name.

"The name of PT Sahabat Finansial Keluarga has changed to PT Honest Financial Technologies," wrote PermataBank Corporate Secretary, Katharine Grace.

Meanwhile, Honest currently owns a 71.21% stake in PT Honest Financial Technologies. Meanwhile, PermataBank is still entitled to a 28.79% stake in the financing company.
Director of Mandala Finance Cristel Lasmana said, the multi-finance industry is on a very prospective track and period. There are still many Indonesians who need to be supported to continue to grow, especially after the pandemic, people who have not been touched by the banking sector for various reasons.

"For investors' interest, I feel that the support given by investors and potential investors is very supportive, it can be seen from the support given in terms of our funding needs," said Cristel.

According to him, this is all because they feel that it is in line with the company's vision, apart from they feel that Mandala is a healthy, stable, and forward looking company, where it has made many efforts to transform towards digital in order to provide more value proposition for the company's consumers.

"Our investor profile is still the same, only more are participating in our funding process. We are supported by funding partners and investors who believe in Mandala's performance. In addition, we are also trusted by large banking syndications, both domestic and foreign," said Cristel.

He admitted that this year the company has signed an MOU with two banking syndications that provide them with a total loan of approximately Rp 2 trillion. In addition, the company is still active in issuing bonds.

Similarly, MUF President Director Stanley Setia Atmadja admitted that foreign investors' interest in the bank and non-bank financial industry is still very good.

"For finance, foreign investors should still have good interest, it just depends on the condition of the multi itself, in terms of potential, network and portfolio quality," he said.