BRI delays this year's acquisition plans<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
State-controlled Bank Rakyat Indonesia (BRI) is likely to delay
\nits plan to make a number of acquisitions this year, including
\nincreasing its share in multifinancing unit PT UFJ-BRI Finance to
\na majority stake.<\/p>\n
BRI president director Sofyan Basir told The Jakarta Post on
\nWednesday that the bank would probably be able to execute the
\nplans some time next year, as it would still need more time to
\nconduct a feasibility study on UFJ-BRI Finance before it could
\nobtain shareholder approval.<\/p>\n
\"We are unlikely to go ahead with any acquisitions this year,
\nincluding the plan to control UFJ-BRI Finance. We feel more
\ncomfortable with making acquisitions next year, because we are
\nstill focusing on several feasibility studies,\" said Sofyan.<\/p>\n
As reported previously, BRI vice president director I Wayan
\nAlit Antara said the bank was planning to increase its share in
\nthe UFJ-BRI Finance this year to a majority stake.<\/p>\n
BRI currently has a 45 percent stake in the company, with the
\nremaining shares controlled by Japan's UFJ Bank.<\/p>\n
By controlling UFJ-BRI Finance, BRI expects to solidify its
\nstrength in serving financing schemes for small and medium
\nenterprises throughout the country.<\/p>\n
The government owns an 80 percent stake in BRI, with the
\npublic holding the remaining.<\/p>\n
BRI is the nation's fourth largest lender by assets and has
\nthe largest network of branches in the country.<\/p>\n
Aside from UFJ-BRI Finance, the bank is also eyeing other
\nfinancial companies in the field of leasing, although the plan
\nmight have also to be postponed to next year.<\/p>\n
In a recent report to House of Representatives Commission VI
\nfor state enterprises, trade and industry, BRI said it had
\nallocated some Rp 940 billion (about US$100 million) this year
\nfor its acquisition plans.<\/p>\n
BRI has targeted some Rp 15.89 trillion in new loans this
\nyear, an increase of 26.04 percent from last year. About 80
\npercent of the new loans will be provided to small and medium
\nenterprises.<\/p>\n
Between this year and 2007, the bank's lending exposure is
\nprojected to grow by between 18 percent and 20 percent.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bri-delays-this-years-acquisition-plans-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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