JCI Rebound, Mini Bank Shares Flying Higher

Jakarta, CNBC Indonesia – Mini bank issuers’ shares, with core capital below Rp 6 trillion, closed sharply on Monday (6/12/2021), as the Jakarta Composite Index (JCI) succeeded rebound.

According to data from the Indonesia Stock Exchange (IDX), the JCI rose 0.13% to 6,547.12, with a transaction value of Rp 12.57 trillion and a trading volume of 21.56 billion shares. Although the JCI strengthened, foreign investors made a net sale of Rp 183.63 billion in the regular market and a net sale of Rp 26.60 billion in the negotiating market and cash market.

The following is the movement of mini bank shares today, Monday (6/12).

1. Neo Commerce Bank (BBYB), +25.00% shares, to Rp 2,750/share

2. Bank Raya Indonesia (AGRO), +9.61%, to Rp 2,110/share

3. Bank Bumi Arta (BNBA), +9.38%, to IDR 3,850/share

4. Bank Ganesha (BGTG), +8.74%, to Rp 224/share

5. Bank Victoria International (BVIC), +6.47%, to IDR 181/share

6. International Business Bank (BBSI), +4.66%, to Rp 4,270/share

7. Bank Oke Indonesia (DNAR), +3.73%, to Rp 278/share

8. Allo Bank Indonesia (BBHI), +3.73%, to Rp 6,950/share

9. Bank Artha Graha Internasional (INPC), +3.23%, to IDR 128/share

10. Bank IBK Indonesia (AGRS), +1.70%, to IDR 179/share

11. Bank Ina Perdana (BINA), +1.60%, to Rp 3,820/share

12. Bank Mestika Dharma (BBMD), +1.50%, to Rp 2,030/share

13. Bank Amar Indonesia (AMAR), + 1.28%, ke Rp 316 / saham

14. Bank QNB Indonesia (BKSW), +1.19%, to IDR 170/share

15. Bank Jago (ARTO), +0.98%, to Rp 15,400/share

According to the data above, the shares of the fintech bank owned by fintech Akulaku BBYB led an increase of 25% or touched the upper auto rejection (ARA) limit. The transaction value of BBYB’s shares is the largest on the stock exchange today, reaching Rp 660.7 billion.

In the midst of this increase, foreign investors bought up BBYB shares with a net purchase value of Rp 5.82 billion in the regular market, but made a net sale of Rp 4.00 billion in the negotiating market and cash market.

Bank Neo Commerce is optimistic that it will be able to meet the minimum core capital requirement of IDR 2 trillion as regulated by the Financial Services Authority (OJK) before 2021 ends.

This banking issuer stated that the core capital of the company would be more than Rp. 3 trillion as of December 2021. Until the end of September 2021, Bank Neo Commerce’s core capital was still Rp. 1.03 trillion or under OJK regulations.

“On the way, we are committed to making our bank more solid, so we are strengthening our core capital so that our core capital is more than IDR 3 trillion in December 2021,” said Aditya Windarwo, Acting Director of Risk and Compliance at Bank Neo Commerce in an online press conference, Thursday (2 /12/2021).

At the end of last November, Bank Neo Commerce announced a plan to increase the company’s capital by conducting Pre-emptive Rights (HMETD) V alias rights issue worth Rp 2.51 trillion. All proceeds from the rights issue, after deducting issuance costs, will be used by Neo Commerce Bank to strengthen core capital.

Currently, Neo Commerce Bank has 12 million customers. This number of customers was achieved by Neo Commerce Bank in less than a year since the company launched the Neo Bank application in March 2021.

In addition to BBYB shares, AGRO shares also shot up 9.61% to Rp 2,110/share, rebounding after sinking in the red zone for 4 consecutive days.

Along with three currencies, BNBA and BGTG shares also rose 9.38% and 8.74% today, continuing their rise on Friday last week (3/12).

For information, OJK stated that all owners of mini banks, aka banks with a core capital (tier 1) below IDR 2 trillion, have committed to comply with the provisions required by the authorities to meet a minimum capital of IDR 2 trillion by the end of this year.

At the end of 2021, the OJK will indeed require banks to have a minimum capital of IDR 2 trillion if they don’t want to go down to a BPR alias Rural Bank.

For next year, the minimum capital will reach IDR 3 trillion as stated in OJK Regulation (POJK) Number 12/POJK.03/2020 concerning Commercial Bank Consolidation.

The Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Heru Kristiyana explained, the process of these banks increasing their core capital continues.

“All the banks have gone that way, I’m sure it’s true, they will definitely comply with our rules. If they don’t comply with severe sanctions, they will be downgraded to BPR,” said Heru Kristiyana, in an interview with CNBC Indonesia, Thursday (25/11/2021) .

Heru added that efforts to increase core capital were carried out by banks by consolidating or looking for strategic partners.

According to CNBC Indonesia’s records, there are at least 13 banks that currently do not meet this minimum capital requirement. To name a few, there are Bank Ina, Bank Ganesha, Bank Capital Indonesia, Bank MNC International, and Bank Aladin Syariah.

CNBC INDONESIA RESEARCH TEAM

[Gambas:Video CNBC]

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