Thanks to Kookmin, Bank Bukopin’s market segment has become increasingly varied

ILLUSTRATION. The existence of Kookmin as the largest bank in South Korea will be able to strengthen trust in Bukopin. KONTAN / Muradi / 2017/04/26

Reporter: Dikky Setiawan | Editor: Dikky Setiawan

KONTAN.CO.ID –JAKARTA-The entry of KB Kookmin Bank continues to increase trust in PT Bank Bukopin Tbk (BBKP). In line with the strengthening of capital and business transformation carried out by Kookmin Bank as the controlling shareholder (PSP), Bukopin is increasingly competitive in serving customers and strengthening the national MSME industry.

President Director of Bank Bukopin Rivan A. Purwantoro said that the joining of Bank Bukopin as part of the KB Financial Group, the holding company of the KB Kookmin Bank business group, is starting to have a positive impact. Amid business pressure due to the pandemic, customer confidence is slowly increasing.

“We are grateful that in this very dynamic and challenging situation, Kookmin is here with great support. We hope that the economic recovery that is currently being carried out by the government and business actors will also strengthen Bukopin’s business in the future,” said Rivan, Friday (13/11).

Kookmin’s strong network and reputation in South Korea also encourage the diversification of Bukopin’s current sources of funding. Rivan said that in the future, Bukopin will optimize the market segments, including retail, corporate, BUMN and Korean Link.

This is also one of Kookmin’s commitments to synergize South Korean business actors and customers, especially in Indonesia to support strengthening Bukopin’s business.

Since joining Bukopin, KB Kookmin has also continued to increase its flow of funds to this bank that is identical to the MSME sector, valued at US $ 780 million or the equivalent of Rp. 11.08 trillion (exchange rate of Rp. 14,200 per US dollar) which is divided into capital deposits and the remaining deposits.

Rivan emphasized that the entry of KB Kookmin opens up great opportunities for Bukopin to expand its customer reach. “We are sure that the transformation that Kookmin and Bukopin is carrying out in various aspects such as product development and banking digitalization, will make the transition faster and encourage positive performance growth and can compete in the national to global banking industry,” said Rivan.

Strengthen customer trust

Hans Kwee, a capital market observer from PT Anugerah Mega Investama, assessed that Kookmin’s existence as the largest bank in South Korea would strengthen his trust in Bukopin. Moreover, this South Korean investor is also supported by thousands of businessmen and South Korean people who invest heavily in Indonesia.

“Kookmin’s strength is that they specialize in the UMKM sector which is also the core business of Bukopin. This will further strengthen customer confidence in the bank. And that’s what Bukopin needs right now,” said Hans.

Hans hopes that Kookmin’s presence will encourage the transformation process of Bukopin into a bank that optimizes technology functions in customer service. Digitalization and strengthening of Bukopin’s capital are two important aspects that must be Kookmin’s priority commitments.

Previous Vice President Hyundai Motor Asia-Pacific Headquarters, Lee Kang Hyun, predicts that Kookmin’s entry to Bukopin will provide optimism for South Korean businesses in Indonesia.

“All (Korean actors) have the potential to become Bukopin’s future customers. Moreover, Bukopin’s strength will also be supported by the digital financial system which is the lifeblood of banking in South Korea, “said Lee.

Currently, there are around 2,000 large, small and medium-sized companies from South Korea such as Samsung, Hyundai Motor, LG and others. Of these, around 190 companies are Kookmin customers in South Korea.