JB Financial wins Indonesian regulatory approval to acquire KB Bukopin Finance

JB Financial Group has received approval from Indonesian financial regulators to acquire a local credit finance company, as the group moves to extend its Southeast Asian footprint into Indonesia and build new growth engines around locally tailored businesses, including electric two-wheeler financing.

JB Financial Group said Monday it had received approval from Indonesia's Financial Services Authority (OJK) to change the major shareholder of local credit finance firm PT KB Bukopin Finance.

Earlier, JB Woori Capital signed a share purchase agreement in July last year with PT Bank KB Indonesia Tbk (KBI) — a subsidiary of KB Kookmin Bank — to acquire an 85 percent stake in KB Bukopin Finance for approximately 29 billion won ($21.3 million). The approval completes the key regulatory step required to finalize the acquisition.

Founded in 1983, KB Bukopin Finance offers a range of credit finance services including corporate finance and working capital financing. As of the end of last year, it operated a head office in Jakarta and eight branch locations, with a staff of 124. Its total assets at year-end stood at 92.8 billion won, up 78.7 percent from the previous year, while net profit for the period came to 1.5 billion won.

JB Financial views the acquisition as a strategic investment to secure a core hub for its Southeast Asian operations, going beyond a simple expansion of its overseas presence. The group sees Indonesia — home to Southeast Asia's largest population and posting annual economic growth of around 5 percent — as a market with strong financial growth potential.

Going forward, JB Financial plans to integrate JB Woori Capital's experience in auto and corporate finance, along with its credit assessment and risk management capabilities, into KB Bukopin Finance's existing customer base and branch network in Indonesia, with the aim of improving both profitability and financial soundness.

Once the acquisition is complete, JB Financial also intends to finalize its equity investment in the Indonesian unit of AI-based fintech firm Aizen Global and begin full-scale strategic collaboration. JB Woori Capital signed a new share subscription agreement with Aizen Global last year.

Aizen Global has been expanding its electric vehicle finance business in Indonesia using mobility data, recently surpassing a cumulative financing record of more than 17,000 vehicles. JB Financial plans to combine the acquired company's local presence with Aizen Global's data and mobility operations capabilities to enter the electric vehicle finance market targeting e-bike riders.

The group plans to roll out products tailored to local demand, including loans for purchasing electric two-wheelers, personal credit loans and battery purchase financing. The strategy is to diversify its portfolio by adding individual customer-focused business to its existing fleet finance operations.

"This acquisition is an important turning point in building a long-term growth foundation in Indonesia," JB Financial Group Chairman Kim Ki-hong said. "We will create a differentiated business model by combining JB Woori Capital's credit and risk management capabilities with Aizen Global's data-driven mobility expertise on a local financial platform."