16-06-2025
KB eyes Bukopin Finance sale in Indonesia turnaround push
KB Kookmin Bank is negotiating with JB Financial Group to sell PT KB Bukopin Finance, its Indonesian installment financing subsidiary, to stay afloat in the Southeast Asian market, according to sources familiar with the matter on Monday.
'Talks are underway between KB and JB,' said a JB Financial Group official. A KB official confirmed that the bank is currently reviewing a potential sale of its Indonesian subsidiary but added that no final decision has been made.
Acquired by KB in 2008, PT KB Bukopin Finance specializes in auto installment loans, personal credit and loans to self-employed individuals.
KB owns a 97 percent stake in PT KB Bukopin Finance, which turned profitable last year after four years of losses, reporting a net income of 12.46 billion rupiah ($1 million).
If the deal is successful, JB Financial Group is poised to accelerate its expansion into Indonesia's auto finance sector, including auto installment financing through its key affiliate JB Woori Capital.
The potential sale is part of KB's broader efforts to turn around its Indonesian operations, which have faced persistent challenges since the bank gained management control of its subsidiary, KB Bank Indonesia, in 2020.
Despite recording a profit of 28.8 billion won ($23 million) in the first quarter of this year, its first positive quarterly result after years of losses, KB Bank Indonesia remains in the red on an annual basis.
Since the acquisition, cumulative losses have reached 1.7 trillion won, spanning more than seven years of operational struggles.
KB aims to return its Indonesian subsidiary to profitability by 2026, with a full-year profit target set for this year.
A key component of this restructuring involves the possible divestment of PT KB Bukopin Finance, a significant asset within KB Bank Indonesia's subsidiary structure.
The sale would allow KB to focus on strengthening its core domestic operations and improving the performance of its regional units.
In addition to PT KB Bukopin Finance, KB Bank Indonesia's corporate structure includes PT Bank KB Bukopin Syariah, which provides Islamic banking services.
Last month, the bank appointed Kunardy Darma Rie as its new president director. This marks the first time a non-Korean has been named to lead KB Indonesia, signaling a shift toward greater localization. Rie, a corporate finance expert, plans to establish a more locally focused management system and enhance revenue streams, aligning with the bank's strategic objectives.
As part of its regional operational optimization, KB Financial Group is also preparing to establish a local financial holding company in Indonesia to comply with the country's financial conglomerate regulations.
