BTN ready to acquire Danareksa subsidiaries

JAKARTA. The state owned enterprises in the financial sector continue to consolidate. Recently, PT Bank Tabungan Negara Tbk (BTN) is planning to acquire the subsidiaries of PT Danareksa.

BTN is targeting to acquire two subsidiaries of PT Danareksa, namely PT Danareksa Investment Management and PT Danareksa Finance. BTN is likely to expand its business to asset management and financing sectors.

The state owned bank, which has specialty in housing credit, prepares an IDR700 billion of funds. “This to complement the business service of BTN”, said Director of Finance and Treasury of BTN Iman Nugroho Soeko.

BTN even has proposed the plans to acquire Danareksa Aset Management dan Danareksa Finance to the Ministry of State Owned Enterprises, which is the shareholder of Danareksa. “We are waiting for the green light from the Ministry of State Owned Enterprises”, Iman said.

Iman claimed that the acquisition is in line with the plan to establish state owned enterprises’ holding in financial sector. According to the plan, Danareksa will be the parent of the state owned enterprises in financial sector.

According to Iman, BTN needs to have subsidiaries in financing to expand the services of housing ownership credits for the people with no fixed income. Meanwhile, the investment management companies will accommodate the Law on Housing Savings. The law stipulates the companies to manage the portfolios of housing saving funds’ securities.

According to the data of Financial Service Authority (FSA), Danareksa Aset Manejemen is managing a total of IDR13.13 trillion of funds as of October 2016, while Danareksa Finance booked a worth of IDR45.11 billion incomes in 2015. The multi finance company focuses on the factoring and leasing businesses.

However, the Commissioner of Danareksa Bondan Pristiwandana refused to make comment, due to the lack of information about the plan for the acquisition of the two subsidiaries of Danareksa.

(MUHAMMAD FARID/Translator)