PT Bank Tabungan Negara Tbk (BBTN), Indonesia’s largest housing finance institution, will set up four new subsidiaries to foray into life insurance, multi-finance, asset management and IT services.
To be set up in the next three years, the bank will earmark a sum of Rp500 billion ($36.76 million) for the creation of the new units.
The company is exploring the joint venture or partnership route to set up these diversified businesses.
Bank Tabungan Negara CEO Maryono said, on the sidelines of the Investor Summit 2015, the bank was looking at cooperation with a company competent in the sector.
The bank is looking at setting up a JV with state-owned insurance firm PT Jasindo this year. In 2016, the bank wants to establish multi finance and IT subsidiaries with state-owned bank association (Himbara). It targets setting up its asset management unit in 2017 or 2018.
To finance the organic and inorganic growth, BBTN plans to issue Rp bonds and asset back securitization worth Rp1.5 trillion in 2016.
He said, the President Joko Widodo administration’s ‘1 Million Housing’ programme was a major driver for growth in loan disbursements for the housing finance entity.
November 12, 2015:
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