PT Bank Central Asia Tbk, Indonesia's largest financial services company by market value, aims to acquire a motor-cycle financing company by 2011 to tap more consumers.
The big banks in Indonesiaare seeking smaller financing firms to consolidate operations and sustain growth. Last year, PT Bank Mandiri Tbk, Indonesia's largest financial services company by assets, acquire PT Tunas Financindo Sarana, a car financing company.
The company has a car financing business already and it is well established now, PT BCA Finance.
BCA Finance was established under the name of PT Central Sari Metropolitan Leasing Corporation in 1981 with the shareholders being BCA, The Long Term Credit Bank of Japan, and Japan Leasing Corporation. However, since 2001, BCA has become the majority shareholders by controlling a 99.58 percent stake.
BCA will earmark IDR10 trillion to support the expansion of the BCA Finance, which mostly provides automotive loans.
Last week, shares of BCA, controlled by U.S. hedge fund Farallon Capital Management LLC, fell 1.9 percent to close at 5,100 rupiah at the close of trading on the Indonesian Stock Exchange.
The central bank gave Bank Central Asia a license to operate a Shariah bank last week. BCA bought control of PT Bank UIB for IDR248.3 billion rupiah last year and convert an Islamic financing-compliant bank.
BCA targets to grow the third party fund (DPK) this year by 10-15 percent as from IDR244 trillion last year into IDR265 trillion by bolstering saving account collection from retail market.
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