JB Financial enters Indonesia, eyes EV finance as new growth engine
Summary
JB Financial Group won approval to acquire an 85 percent stake in KB Bukopin Finance in Indonesia, clearing a key regulatory hurdle for its Southeast Asia expansion on Monday. The group plans to complete the deal by year-end and later rebrand the company, with the new name expected in December. It will also focus on EV financing and other retail products to reduce reliance on corporate lending. Chairman Kim Ki-hong called the transaction a pivotal turning point for its long-term foundation in Indonesia.
Key Facts
- The Indonesian Financial Services Authority approved JB Financial Group’s plan to buy an 85 percent stake in KB Bukopin Finance for about 29 billion won, or $22 million.
- JB Woori Capital signed the share purchase agreement with PT Bank KB Indonesia, KB Kookmin Bank’s Indonesian subsidiary, in July last year.
- KB Bukopin Finance was established in 1983 and mainly provides corporate and working capital financing in Indonesia.
- JB Financial plans to complete the acquisition by the end of this year and finalize a new company name in December.
- Aizen Global has already financed more than 17,000 EVs in Indonesia, and JB plans to complete an equity investment in its Indonesian subsidiary to support the new lending strategy.
JB Financial Group's headquarters in Jeonju, North Jeolla Province / Courtesy of JB Financial Group
JB Financial Group won regulatory approval to acquire a majority stake in an Indonesian finance company, completing a key step toward establishing a foothold in Southeast Asia’s largest economy, the company said Monday.
The Indonesian Financial Services Authority gave its approval after the group’s affiliate, JB Woori Capital, signed a share purchase agreement with PT Bank KB Indonesia, KB Kookmin Bank’s Indonesian subsidiary, in July last year to acquire an 85 percent stake in KB Bukopin Finance for about 29 billion won ($22 million).
The approval completes the key regulatory procedures required to close the deal. It will allow JB Financial Group to accelerate its expansion across Southeast Asia by adding Indonesia to its existing operations in Cambodia, Myanmar and Vietnam.
JB Financial aims to complete the acquisition by the end of this year and subsequently rebrand the company, with the new name expected to be finalized in December.
Established in 1983, KB Bukopin Finance offers a broad range of lending services in Indonesia, with corporate and working capital financing forming the core of its business.
Following the acquisition, the Korean financial group plans to expand KB Bukopin Finance beyond its existing corporate and auto financing businesses by adding more retail-oriented products. Electric vehicle (EV) financing will be a particular focus as the group seeks to develop new growth engines in the Indonesian market.
To support the expansion, JB also plans to complete an equity investment in the Indonesian subsidiary of Aizen Global, an artificial intelligence-based fintech company specializing in mobility data. Aizen Global has already financed more than 17,000 EVs in the Indonesian market.
By combining KB Bukopin Finance’s local financial infrastructure with Aizen Global’s data and mobility capabilities, JB plans to offer financing for electric two-wheelers and battery purchases, as well as personal loans. The strategy is aimed at reducing the group’s reliance on corporate financing and diversifying its revenue base through retail lending.
“This transaction marks a pivotal turning point in establishing a long-term foundation for our operations in Indonesia,” JB Financial Chairman Kim Ki-hong said.
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