BTN Officially Acquired a Venture Capital Under the State-owned Enterprise

Bank Tabungan Negara (BTN) officially acquired a Venture Capital to support the company's line of property finance. The company is to obtain a license from OJK for the current plan.

It was decided after today's shareholder general meeting (RUPSLB) (8/29). The meeting also evaluates employee's performance during the first semester of 2019 and its management shifting.

"We're continuing today's meeting on PMV acquisition to OJK for a license, in order to take this as the company's strategic business to grow," BTN's Corporate Secretary, Achmad Chaerul said in an official release.

BTN acquired PT Sarana Papua Ventura (SPV), an investment arm of PT Bahana Artha Ventura (BAV), which is a subsidiary of PT Bahana Pembinaan Usaha Indonesia. The election is expected to be the synergy of state-owned enterprises as mandated by the Ministry.

BAV also has PT Sarana Nusa Tenggara Timur Ventura as a subsidiary which shares are majorly acquired by BRI. They are now rebranding as BRI Ventures head by Nicko Widjaja, which previously led Telkom's VC, MDI Ventures.

The company has prepared the budget to take over SPV. It's to be used for VC's equity and business development up to 90% in advance.

Chaerul said the VC's management is to focus on the core business of property finance and to increase non-interest revenue in order to increase the company's credit and profit.

BTN participation lightens up the competition among red-plate companies which currently has its own VC. Of the four state-owned banks, BNI is the only one left.

BNI has spread out the news since last year. The latest is to be announced in 2019. They haven't decided to create new or acquired the current. BNI ready to invest Rp600 billion to Rp700 billion for this corporate action.

The whole banking plan for VC's acquisition is partly to keep the shares in Finarya (LinkAja) to stay undiluted.

– Original article is in Indonesian, translated by Kristin Siagian