Sign up | Log in



Home  >>   Daily News  >>   Indonesia  >>Insurance  >> BRI in negotiations to take over local life insurance firm
NEW UPDATES Asean Affairs 8 April  2015  

BRI in negotiations to take over local life insurance firm

State lender Bank Rakyat Indonesia (BBRI) is currently in negotiations to take over a life insurance company as part of a wider program to boost the bank’s insurance business.

BRI president director Asmawi Syam said on Monday that it was holding talks with at least three life insurers about the possibility of taking over one of the firms.

“We are looking at several firms, more than three life insurers. This is an effort to expand our business and then combine the new subsidiary with the units that we already have,” he said after attending a hearing at the House of Representatives.

BRI had allocated Rp 3 trillion (US$231.8 million) to finance its upcoming acquisitions, Asmawi said, adding that future inorganic growth would come from acquisitions of subsidiaries in other financial sectors as well.

BRI currently has three subsidiaries, namely sharia lender BRISyariah, agriculture-focused lender BRI Agro and remittance office BRI Remittance in Hong Kong.

Despite BRI being listed as a major financial firm, most of its assets are still generated by bank-only operations.

Its latest financial report showed that it had Rp 801.95 trillion worth of consolidated assets by the end of 2014. Banking operations made up the lion’s share of the 97 percent, meaning that subsidiaries contributed a meagre 3 percent.

BRI has for several years expressed the intention to expand its business coverage by acquiring a subsidiary. Last year, it said that it was interested in taking over state life insurer Jiwasraya, which would then be merged with BRIngin Life, another life insurer.

BRIngin Life is affiliated to BRI and controlled by BRI’s pension fund. At the time, then BRI president director Sofyan Basir said that he wanted to merge the two to create a major life insurance company. The plan, however, never came to fruition.

Asmawi said that BRI was now in the process of selecting an investment bank to advise the lender on the acquisition plan. “Several investment banks have submitted documents to us [for the selection process],” he said.

The state lender — which currently earns the largest profits in Indonesia — is aiming for Rp 867.8 trillion in consolidated assets this year.

In lending, it hopes to post a 16.8 percent increase to Rp 572.8 trillion, while in deposits, it expects to book an 11.5 percent rise to Rp 669.5 trillion.

To help reach the target, BRI is set to launch its first ever floating bank services in June. The services will be offered on a boat — dubbed BRI Teras Kapal — in the Thousand Islands regency.

Asmawi said that the boat was expected to help cater to its existing customers and open up access to new clients in the area. “Once we are able to smoothly run the operations, we will open a formal branch there and the boat will move somewhere else,” he said, adding that an additional boat would be deployed if needed.

BRI posted a 14.35 percent increase in net profits last year to Rp 24.2 trillion, making it the country’s most profitable bank at present.

Its outstanding loans reached Rp 490.91 trillion as of 2014, a 13.88 percent increase from Rp 430.62 trillion in 2013.

The micro lending, which contributed to 31.25 percent or a majority portion of its total loans, grew 16 percent. The micro segment also saw 7.3 million customers as of last year, up from 6.5 million in 2013, the bank said recently.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           April  8 , 2015 Subsribe Now !
• SCIC posts Q1 earnings of $39m Subcribe: Asean Affairs Global Magazine
• BRI in negotiations to take over local life insurance firm
• Japan’s AEON to open first mall in Indonesia in May
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• STB to launch S$20m global campaign to boost tourism numbers
• Sangkran set to break records in tourism and line-dancing
Asean Analysis                    March 25, 2015
• Asean Analysis March 25, 2015
Statement on Singapore’s first Prime Minister’s Passing
Advertise Your Brand

Asean Stock Watch  April 7,  2015
• Asean Stock Watch-April 7, 2015
The Biweekly Update
• The Biweekly Update March 20, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand