KONTAN.CO.ID - JAKARTA. Foreign investors are keen to buy up shares of finance companies or multi-finance companies in Indonesia.

Recently, NTAsian Discovery Master Fund, or known as NTAsset, added shares in PT BFI Finance Indonesia Tbk (BFIN).

As of November 17, NTAsset's shareholding was at 5.25%, up from late October at 5.07%.

BFI Finance Director of Finance Sudjono said, NTAsset once owned a portion of BFIN shares of up to 10%.

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Sudjono revealed that the majority of BFIN shares, or around 70%, are held by foreign investors.

Another multi-finance company that is being acquired by foreigners is PT Mandala Multi Finance.

Adira Finance and Mitsubishi UFJ Financial Group (MUFG) will buy 80.6% of Mandala Finance's shares.

Meanwhile, Adira Finance is also indirectly owned by MUFG.

The Association of Indonesian Financing Companies (APPI) stated that foreign investors' interest in finance is due to Indonesia's demographics.

"Car sales are still around one million. That's only cars, not motorbikes. So the market potential is promising," said Suwandi, General Chair of APPI.

According to Suwandi, investment returns in Indonesia are still good.

"So it is natural that foreigners will still enter Indonesia. Investors will look for places to get better returns," he said.
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