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Indonesia’s small banks still attracting investors despite growing risks
Venture capitalist Patrick Walujo and former banker Jerry Ng increased their stakes in publicly listed Bank Artos through a rights issue on April 2.
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A security officer stands in front of an office of PT Bank Maspion in Jakarta in this undated photo. (kontan.co.id/Baihaki)
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ndonesia’s small-scale banks are still attracting foreign investment despite rising concerns about the economic impacts of the emergency measures imposed by the government to halt the spread of COVID-19.
Venture capitalist Patrick Walujo and former banker Jerry Ng, for example, have increased their stakes in publicly listed Bank Artos through a rights issue on April 2.
Patrick’s stake in the bank through his Hong Kong-based Wealth Track Technology Limited was increased to 23.65 percent from 13.35 percent previously. In the meantime, Jerry’s stake in Bank Artos, owned through PT Metamorfosis Ekosistem Indonesia (MEI), rose to 66.7 percent from 37.65 percent.
The moves were part of the investors’ plan to raise the bank’s classification from BUKU I, for banks with core capital below Rp 1 trillion (US$64.50 million), to BUKU II, for banks with core capital between Rp 1 trillion and Rp 5 trillion, following their acquisition last year.
Bank Artos president director Deddy Triyana said in October 2019 that the acquisition was intended to support the bank’s plans to focus on developing a digital platform to attract younger customers with high incomes who preferred digital banking products.
The bank also intends to move into the micro, small and medium enterprise (MSME) segment and mass market consumer banking.
Following the rights issue, MEI director Anika Faisal said on April 16 that the bank would not repurchase the remaining stakes from the public through a mandatory tender offer.
