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Jakarta Post

More banks to enter BUKU IV category by 2021

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, February 26, 2019   /   03:52 pm
More banks to enter BUKU IV category by 2021 A woman walks past an OCBC NISP branch office in Glodok Plaza in West Jakarta on June 12, 2017. (JP/Damar Harsanto)

More lenders are looking for spots in the BUKU IV category, which includes banks whose core capital exceeds Rp 30 trillion (US$2.14 billion), within the next two years.

Private lender OCBC NISP intends to be a BUKU IV member by 2021.

OCBC NISP president director Parwati Surjaudaja said the lender would have to maintain its credit and net profit growth at between 10 and 15 percent until 2020 to reach the target.

The lender saw a 21.23 percent year-on-year growth in net profits and a 10.8 percent credit growth in 2018. Meanwhile, it recorded a 11.19 percent growth in core capital to Rp 23.59 trillion in 2018 from Rp 21.21 trillion in the previous year.

Another bank possibly entering the BUKU IV category is a new bank formed by a merger between private lender Danamon Indonesia and Bank Nusantara Parahyangan (BNP), whose combined core capital could total Rp 30 trillion.

Danamon recorded total capital of Rp 28.5 trillion by the end of 2018, while BNP recorded Rp 1.26 trillion in capital by September 2018. If combined, the merged bank's capital would be Rp 29.76 trillion.

"If the merged bank's capital can exceed Rp 30 trillion, the bank will automatically enter the BUKU IV category," Danamon director Rita Mirasari told kontan.co.id.

State-owned lender bank Bank Tabungan Negara (BTN) also showed interest in entering the BUKU IV category, although it had put off its previous plan of entering the category by 2020.

BTN's director for strategy, compliance and risk, Mahela Prabantariko, said the bank's capital reached Rp 21 trillion in 2018.

Mahela said BTN targeted a 15 percent growth in its core business, house mortgages, with 20 percent growth in net profits.

The banks currently listed in the BUKU IV category are Bank Rakyat Indonesia (BRI), Mandiri, Bank Negara Indonesia (BNI), Bank Central Asia (BCA) and CIMB Niaga. (ars/dmr)