KONTAN.CO.ID - JAKARTA. Mitsubishi UFJ Financial Group, Inc. (MUFG Group) further strengthens its business in Indonesia. One way that MUFG Group has done is by making acquisitions.

Most recently, this Japanese financial group acquired a finance company in Indonesia, namely PT PT Mandala Multifinance Tbk (MFIN).

In this case, MUFG Group purchased shares owned by PT Jayamandiri Gemasejati (JG Motor) together with a number of other shareholders, through MUFG Bank, Ltd. (MUBK) as much as 70.6% and PT Adira Dinamika Multi Finance Tbk (Adira Finance) and as much as 10%.

There are at least three multi-finance companies that have been managed by this Japanese financial conglomerate.

Last year, MUFG's subsidiary, Bank of Ayudhya Public Company Limited (Krungsi) and Adira Finance also announced the acquisition of Home Credit Indonesia's consumer financing business.

Responding to MUFG's continuing expansion actions, ADMF Chief Financial Officer Sylvanus Gani said that MUFG considers Indonesia to be a very important market because it has the largest GDP in Southeast Asia, so it is expected to have a high growth rate in the future.

It's just that, Gani doesn't want to confirm whether the expansion action from MUFG will continue in the near future. He only said that it all had to pay attention to the availability of capital from the entities invited, in this case both Adira Finance and Bank Danamon.

"What you want to buy must also be sizeable," said Gani to KONTAN, Monday (26/6).

Regarding the acquisition of MFIN, Gani said that currently there has been no definitive discussion whether MFIN will be merged with Adira Finance or remain as two different entities, such as with Home Credit Indonesia.

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If previously the acquisition of Home Credit Indonesia was made because they wanted to adopt the technology, now Gani says the acquisition of MFIN was due to the dominance of the financing market in Eastern Indonesia. Where, MFIN is considered superior in that regard.

"Our assets in the eastern part of Indonesia are around less than 20%, not including Kalimantan," he said.