Five Indonesian Multifinance Companies Will Be Acquired by Foreign Investors

CORPORATE ACTION - JAKARTA. The Financial Services Authority (OJK) has announced that there are five multi-finance companies currently in the process of being acquired by foreign investors.

The Executive Head of the Supervisory Agency for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Services Institutions (PVML) of OJK, Agusman, said that these investors come from Japan, South Korea, and Hong Kong. 

"The acquisition transaction value of these five financing companies reaches IDR 13.8 trillion," he said in a written answer sheet, on Thursday (22/2).

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Previously, the Indonesian Financing Company Association (APPI) had said that Indonesian multifinance companies still have the potential to attract foreign investors in 2024.

The Chairman of APPI, Suwandi Wiratno, did not deny that many foreign investors acquired Indonesian multi-finance companies last year. 

This means that Indonesia is still one of the countries considered for investment.

Suwandi mentioned that last year, Indonesian multifinance companies gained many strategic partners from Korea and China. 

Suwandi explained that there are various considerations for foreign investors to invest in Indonesia.

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He said that each foreign investor certainly has a risk appetite. This means that foreign investors have a desire to take risks in investing.

"So, if they are interested, it depends on the risk appetite of each investor. If they see that there are still opportunities and consider Indonesia as a country that can still provide good returns, yes, they will invest," said Suwandi.

According to Kontan's records, investors from various countries have already entered the domestic multifinance business. For example, Woori Card Co., Ltd from Korea has become the new controller at Batavia Prosperindo Finance.

In addition, there is Singapore's Honest Financial Technologies International Pte.Ltd (Honest) which acquired the multi-finance owned by Bank Permata, namely PT Sahabat Financial Keluarga. Meanwhile, Mitsubishi UFJ Financial Group (MUFG) from Japan together with PT Adira Dinamika Multi Finance (Adira Finance) acquired PT Mandala Multifinance Tbk (MFIN).