ILUSTRASI. Foreign Companies Enjoy Hunting for Local Multifinance Companies.
Reporter: Adrianus Octaviano, Arif Ferdianto, Yuwono Triatmodjo | Editor: Hasbi Maulana
KONTAN.CO.ID - JAKARTA. The domestic financing industry continues to attract investors. The increasingly large market has made investors flock to it.
Most recently, Mitsubishi UFJ Financial Group, Inc. (MUFG Group) announced that it bought 80.6% of PT Mandala Multifinance Tbk's (MFIN) shares worth Rp 7.04 trillion.
MUFG Group bought 70.6% of the shares owned by PT Jayamandiri Gemasejati (JG Motor) together with a number of other shareholders through MUFG Bank, Ltd. (MUBK). PT Adira Dinamika Multi Finance Tbk (ADMF), a subsidiary of MUFG, also took a 10% stake.
Head of the IKNB 2B Supervisory Department of the Financial Services Authority (OJK), Bambang W. Budiawan, assessed that acquisitions made by foreign companies indicate a good business climate. He also signaled that acquisitions by foreign investors in the multifinance industry could continue.
"If three to four companies merge and acquire by the end of June 2024, I'm pretty sure it will be realized. The acquisition process of financial services institutions is not a simple process, so others need time," Bambang told KONTAN yesterday. Only he is still keeping the names of investors who are hunting for local multifinance a secret.
|
Multifinance Mergers and Acquisitions List |
||
|---|---|---|
|
Year |
Mergers/Acquisitions |
Description |
|
2020 |
Kredivo acquires PT Swarna Niaga Finance |
Swarna Niaga Finance changes its name to PT FinAccel Finance Indonesia |
|
KB Kookmin Card Corp acquisition of PT Finansia Multi Finance (KreditPlus) |
Changed name to KB Finansia |
|
|
2021 |
Xendit Buys Globalindo Multi Finance shares |
PT Globalindo Multi Finance and PT Emas Persada Finance merger |
|
2022 |
Tender offer Trinugraha Capital & Co SCA shares in PT BFI Finance Indonesia Tbk (BFIN) |
Boy Thohir and Jerry Ng own shares in Trinugraha Capital |
|
Singapore second-hand car dealership, Carro (Trusty Cars Pte Ltd), acquires PT Tirta Finance |
renamed PT Sembrani Finance Indonesia |
|
|
Honest Financial Technologies International (Singapore) acquisition of PT Sahabat Finansial Keluarga (Shares owned by Bank Permata) |
Changed its name to Honest Financial |
|
|
Modalku Acquires Buana Sejahtera Multidana |
Changed name to Modalku Finance |
|
|
Woori Card Pte Ltd acquisition of PT Batavia Prosperindo Tbk |
Renamed PT Woori Finance Indonesia, Tbk |
|
|
Singapore startup Spenmo acquisition of PT Beta Inti Multifinance |
Spenmo payment company |
|
|
MUFG, Krungsi, and Adira Finance acquisition of Home Credit Indonesia |
Buy Home Credit business in Indonesia and Singapore |
|
|
2023 |
MUFG Bank and Adira Finance acquire Mandala Multifinance |
MUFG owns three multifinances |
Source: KONTAN Research
Chairman of the Indonesian Finance Companies Association (APPI), Suwandi Wiratno, said that acquisitions will also strengthen the capital structure of the multifinance industry. That way, financing will be more vibrant, and the industry will continue to grow.
Add to collection
MUFG's move to acquire Mandala Finance also strengthens the multifinance business owned by the Japanese conglomerate. There are three local multifinance companies owned by MUFG. In addition to Adira and Mandala, MUFG had previously bought shares in Home Credit Indonesia.
ADMF Chief Financial Officer Sylvanus Gani said MUFG considers Indonesia a very important market because it has the largest Gross Domestic Product (GDP) in Southeast Asia. That way, the Indonesian market will have a high growth rate in the future.
Gani also hinted that MUFG could add to its collection of multifinance companies in the country. "The condition is that those who want to buy must also be sizeable," he said.
Baca Juga: Pertamina, Petronas Aim to Replace Shell in Masela Project, Indonesia Minister Says
MUFG bought Mandala Finance because the company coded MFIN has a strong business in the Eastern Indonesia financing market. "Our assets in Eastern Indonesia are only less than 20%, not including Kalimantan," said Gani.
Meanwhile, for Mandala Finance, this acquisition will strengthen its business. President Director of Mandala Finance, Harryjanto Lasmana, said that this transaction aims to accelerate Mandala's growth strategy, which has been operating for 26 years, and strengthen Mandala Finance's position as one of the leading financing companies in Indonesia.
According to Harryjanto, by becoming part of the MUFG Group, Mandala will further strengthen its position as one of the key players in the consumer finance sector in Indonesia.
|
Big Five Multifinance Players |
|
|---|---|
|
Name |
Asset (1st Quarter-2023) |
|
PT Sinar Mas Multiartha Tbk (SMMA) |
Rp 114,70 trillion |
|
PT Adira Dinamika Multi Finance Tbk (ADMF) |
Rp 28,53 trillion |
|
PT Indomobil Multi Jasa Tbk (IMJS) |
Rp 27,56 trillion |
|
PT BFI Finance Indonesia Tbk (BFIN) |
Rp 23,96 trillion |
|
PT Clipan Finance Indonesia Tbk (CFIN) |
Rp 8,59 trillion |
Source: Company Financial Statements
Foreign investors are not the only ones interested in entering the domestic financing business. A number of local businesses are also eyeing the potential for development in this business.
Start-up company Moladin, for example, entered the financing business by acquiring PT Pro Car International Finance. The acquisition value was not disclosed. Now, Pro Car has also changed its name to Moladin Finance Indonesia.
PT Indika Energy Tbk (INDY), which owns the Alva One and Alva Cervo electric motorcycle businesses, is also considering entering the financing business, aka multifinance. Arsjad Rasjid, President Director of INDY, said that the electric vehicle business requires a financing or leasing company.
"I have a motorcycle, of course I need a leasing company," Arsjad told KONTAN. However, he is still keeping a tight lid on this plan, including when and who the leasing company will acquire.
