JAKARTA-
PT Bank Rakyat Indonesia (BRI) (JSX:BBRI) said it was eyeing several banks including PT Bank Bukopin (JSX:BBKP) to support its plans to consolidate its business in Indonesia's retail sector.
Sofyan Basir, the president of the state lender, said the bank has enough cash to buy a mid-sized bank with strong credit market in small and medium enterprise and consumer business sector.
Discussion is in progress on acquisition of Bank Bkopin, which is partly owned by the government, Basir was quoted as saying by the newspaper Jakarta Globe.
A source at the office of the state minister for state enterprises said BRI, Indonesia's second largest bank in assets, was set to finalize the acquisition of Bukopin by the end of this year.
Monday, July 27, 2009
Thursday, July 16, 2009
BANK RAKYAT INDONESIA EYEING PT BANK BUKOPIN
JAKARTA-
The management of state bank, Bank Rakyat Indonesia (BRI), is eyeing PT Bank Bukopin (JSX:BBKP), a bank partly owned by the government.
There has been no official talk with Bukopin, but BRI is optimistic the process would go smoothly, BRI director Bambang Supeno said.
BRI failed in its attempt to acquire Bank Tabungan Negara (BTN), another state bank, as the plan was rejected by the House of Representatives.
A decision would be made after a new cabinet was formed following last week's presidential election, Bambang said.
BRI chief commissioner Bunasor Sanim said the bank management had proposed the plan to acquire Bukopin to the board of commissioners.
The management of state bank, Bank Rakyat Indonesia (BRI), is eyeing PT Bank Bukopin (JSX:BBKP), a bank partly owned by the government.
There has been no official talk with Bukopin, but BRI is optimistic the process would go smoothly, BRI director Bambang Supeno said.
BRI failed in its attempt to acquire Bank Tabungan Negara (BTN), another state bank, as the plan was rejected by the House of Representatives.
A decision would be made after a new cabinet was formed following last week's presidential election, Bambang said.
BRI chief commissioner Bunasor Sanim said the bank management had proposed the plan to acquire Bukopin to the board of commissioners.
DBS Bank Targets Local Indonesian Bank
One of Asian top banks, DBS, will expand in Indonesia, The largest Singapore-based bank will also acquire a local bank.
"Bank acquisition is possible as long as it provides us with more value," said Bank DBS Indonesia Commissioner Bernard Tan on Thursday, July 16.
The total assets of DBS Bank reach Sin$182.7 billion in 2008.
Bernard said Indonesia is an important and strategic market due to the high potential of the nation's economic growth.
DBS runs operation in 16 countries worldwide such as the United States, England, China, Japan, Hong Kong, India, South Korea, Malaysia, Philippines, Vietnam, and Taiwan.
"Bank acquisition is possible as long as it provides us with more value," said Bank DBS Indonesia Commissioner Bernard Tan on Thursday, July 16.
The total assets of DBS Bank reach Sin$182.7 billion in 2008.
Bernard said Indonesia is an important and strategic market due to the high potential of the nation's economic growth.
DBS runs operation in 16 countries worldwide such as the United States, England, China, Japan, Hong Kong, India, South Korea, Malaysia, Philippines, Vietnam, and Taiwan.
BRI SAYS MAY BUY STAKE IN BUKOPIN
JAKARTA-
Indonesia's second-largest lender, PT Bank Rakyat Indonesia Tbk (BBRI.JK), is considering buying a stake in lender PT Bank Bukopin, Compliance Director Bambang Supeno said.
Indonesia's second-largest lender, PT Bank Rakyat Indonesia Tbk (BBRI.JK), is considering buying a stake in lender PT Bank Bukopin, Compliance Director Bambang Supeno said.
Indonesia's Bank Danamon Q2 net profit down 20 pct
JAKARTA -
Indonesia's sixth-largest lender, PT Bank Danamon Tbk (BDMN.JK), on Thursday reported a 20 percent drop in second-quarter net profit. The lender, controlled by a consortium which includes Singapore's state investor Temasek Holdings [TEM.UL] and Deutsche Bank (DBKGn.DE), said net profit for April-June fell to 477 billion rupiah ($47.25 million) from 595.3 billion rupiah a year ago.
Analysts polled by Reuters Estimates had expected Danamon to post a net profit of 1.93 trillion rupiah in 2009, up from 1.53 trillion rupiah last year. ($1 = 10,095 rupiah)
Indonesia's sixth-largest lender, PT Bank Danamon Tbk (BDMN.JK), on Thursday reported a 20 percent drop in second-quarter net profit. The lender, controlled by a consortium which includes Singapore's state investor Temasek Holdings [TEM.UL] and Deutsche Bank (DBKGn.DE), said net profit for April-June fell to 477 billion rupiah ($47.25 million) from 595.3 billion rupiah a year ago.
Analysts polled by Reuters Estimates had expected Danamon to post a net profit of 1.93 trillion rupiah in 2009, up from 1.53 trillion rupiah last year. ($1 = 10,095 rupiah)
Indonesia banks report profits, loan growth targets
Danamon Q2 net profit down 20 pct to 477 bln rupiah
* Danamon Q2 net interest income up 25 percent
* BNI Q2 net profit more than doubles
* BNI Q2 net interest income up 19 percent
* BNI revises loan growth target to 14 pct from 16-18 pct
JAKARTA -
Two Indonesian banks on Thursday reported profits for the second quarter but indicated that the lending environment in Southeast Asia's biggest economy remains difficult amid a global economic slowdown.
The country's sixth-largest lender, PT Bank Danamon Tbk (BDMN.JK), said second-quarter net profit fell 20 percent to 477 billion rupiah ($47.25 million) from 595.3 billion rupiah a year ago, citing the high cost of funds and credit.
"In the first half 2009 compared to first half 2008 there was a drop mainly because of high cost of funds we experience in the first quarter of this year and also high cost of credit across the banking sector in indonesia," said Danamon's President Director Sebastian Paredes.
Net interest income in the second quarter climbed 25 percent to 2.345 trillion rupiah from 1.88 trillion rupiah a year earlier.
The lender reported a gross non-performing loan (NPL) ratio of 3.5 percent in the January-June period, compared to 2.3 percent a year ago.
PT Bank Negara Indonesia, the fourth-largest lender, said net profit doubled in the second quarter but it revised its loan growth target for 2009 down to 14 percent, from a previous forecast of 16-18 percent, saying that first-quarter lending was not as high as expected.
"In the first quarter we did not see a pick up in lending so we take a more conservative figure of 14 percent until the end of 2009," said President Director Gatot Suwondo in a news conference.
Analysts polled by Reuters Estimates had expected Danamon to post a net profit of 1.93 trillion rupiah in 2009, up from 1.53 trillion rupiah last year. They expect BNI to post a net profit of 2.219 trillion rupiah, up from 1.222 trillion last year. ($1 = 10,095 rupiah)
* Danamon Q2 net interest income up 25 percent
* BNI Q2 net profit more than doubles
* BNI Q2 net interest income up 19 percent
* BNI revises loan growth target to 14 pct from 16-18 pct
JAKARTA -
Two Indonesian banks on Thursday reported profits for the second quarter but indicated that the lending environment in Southeast Asia's biggest economy remains difficult amid a global economic slowdown.
The country's sixth-largest lender, PT Bank Danamon Tbk (BDMN.JK), said second-quarter net profit fell 20 percent to 477 billion rupiah ($47.25 million) from 595.3 billion rupiah a year ago, citing the high cost of funds and credit.
"In the first half 2009 compared to first half 2008 there was a drop mainly because of high cost of funds we experience in the first quarter of this year and also high cost of credit across the banking sector in indonesia," said Danamon's President Director Sebastian Paredes.
Net interest income in the second quarter climbed 25 percent to 2.345 trillion rupiah from 1.88 trillion rupiah a year earlier.
The lender reported a gross non-performing loan (NPL) ratio of 3.5 percent in the January-June period, compared to 2.3 percent a year ago.
PT Bank Negara Indonesia, the fourth-largest lender, said net profit doubled in the second quarter but it revised its loan growth target for 2009 down to 14 percent, from a previous forecast of 16-18 percent, saying that first-quarter lending was not as high as expected.
"In the first quarter we did not see a pick up in lending so we take a more conservative figure of 14 percent until the end of 2009," said President Director Gatot Suwondo in a news conference.
Analysts polled by Reuters Estimates had expected Danamon to post a net profit of 1.93 trillion rupiah in 2009, up from 1.53 trillion rupiah last year. They expect BNI to post a net profit of 2.219 trillion rupiah, up from 1.222 trillion last year. ($1 = 10,095 rupiah)
IMF asks Indonesian central bank to stop rates decrease
JAKARTA-
The International Monetary Fund (IMF) suggested the Indonesian central bank, Bank Indonesia (BI), to leave the regime of interest rates decrease policy starting from the second semester this year following the expectation of increasing commodity prices and improving demand in line with the recovery of the world's economy.
Milan Zavadjil, the agency's Chief Representative for Indonesia, said that the central bank's approach should be careful ahead of the end of the year. He said that further interest rates cuts were irrelevant anymore with the current condition.
He argued that the big monetary stimulus channeled to the banking system would eventually show its impact. In the same time, high level liquidity should be handled with proper policies.
"We believe that the BI has a limited room to further cut rate seven though inflation pressure has been receding lately and we see rupiah appreciation," he told the daily on Monday.
In the World Economic Outlook (WEO) Update released by the agency last week, countries were considered starting to get out of the worst economic crisis since the World War II. However, the process to recovery was predicted to go slow.
In the report, improving commodity prices and demand in line with economic recovery in advanced nations lately were predicted to provide pressure to the world's inflation next year.
Generally, developing countries were suggested to lower their interest rates if their have low rates of inflation. However, there should be some careful considerations to avoid disruption in foreign exchange rates and capital outflow.
According to Zavadjil, further decreasing interest rates were not suitable for Indonesia anymore. "The Indonesian economy is starting to grow rapidly. Besides, there are challenges from increasing commodity prices that could contribute to acceleration on inflation speed," he said.
Since December 2008 to July 2009, the BI had been reducing interest rates by 275 basis points to 6.75 percent currently as a response of decreasing inflation speed. In July 2009, year-on-year inflation was recorded at 3.65 percent.
The International Monetary Fund (IMF) suggested the Indonesian central bank, Bank Indonesia (BI), to leave the regime of interest rates decrease policy starting from the second semester this year following the expectation of increasing commodity prices and improving demand in line with the recovery of the world's economy.
Milan Zavadjil, the agency's Chief Representative for Indonesia, said that the central bank's approach should be careful ahead of the end of the year. He said that further interest rates cuts were irrelevant anymore with the current condition.
He argued that the big monetary stimulus channeled to the banking system would eventually show its impact. In the same time, high level liquidity should be handled with proper policies.
"We believe that the BI has a limited room to further cut rate seven though inflation pressure has been receding lately and we see rupiah appreciation," he told the daily on Monday.
In the World Economic Outlook (WEO) Update released by the agency last week, countries were considered starting to get out of the worst economic crisis since the World War II. However, the process to recovery was predicted to go slow.
In the report, improving commodity prices and demand in line with economic recovery in advanced nations lately were predicted to provide pressure to the world's inflation next year.
Generally, developing countries were suggested to lower their interest rates if their have low rates of inflation. However, there should be some careful considerations to avoid disruption in foreign exchange rates and capital outflow.
According to Zavadjil, further decreasing interest rates were not suitable for Indonesia anymore. "The Indonesian economy is starting to grow rapidly. Besides, there are challenges from increasing commodity prices that could contribute to acceleration on inflation speed," he said.
Since December 2008 to July 2009, the BI had been reducing interest rates by 275 basis points to 6.75 percent currently as a response of decreasing inflation speed. In July 2009, year-on-year inflation was recorded at 3.65 percent.
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