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Gov’t to participate in BNI’s rights issue

09 July 2021 07:42

JAKARTA. The government would exercise its rights during the rights issue of PT Bank Negara Indonesia (Persero) Tbk (BBNI) through the State Equity Participation, investing IDR 7 trillion out of the total value of the rights issue of IDR 11.7 trillion.

The Vice Minister of State-owned Enterprise (BUMN), Kartika “Tiko” Wirjoatmodjo, claims that this step aims to maintain the government’s portion in BNI as its stock controller. By enacting this step, the Ministry also estimates that the Capital Adequacy Ratio (CAR) of BNI could improve to 21.8% in 2025.

The prediction considers the CAR level of BNI that continuously underperforms as it only scores 19.7% up to 16.7% throughout 2016-2020. “BNI is the lowest among its peers, as well as the first-tier of CAR in 16% range,” Tiko admitted during the meeting with the Commission VI of DPR RI, Thursday (8/7).

Tiko further reveals that with its status as a systemic bank, the Financial Services Authority (OJK) has demanded BNI improve its tier-1 capital. (AM/ZH)

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