Agree On Management Of Bukopin's IDR 1.3 Trillion Troubled Assets, PPA Affirms Its Commitment To Optimizing Minority Share Ownership

JAKARTA - PT Bank KB Bukopin Tbk continues to strive to improve asset quality by cooperating with PT Perusahaan Pengelola Asset (PPA) through cooperation in managing low-quality assets. The value is IDR 1.3 trillion.

KB Bukopin Finance Director Seng Hyup Shin said the collaboration between KB Bukopin and PPA is a form of our commitment to always make improvements. "Through this collaboration, KB Bukopin will complete the settlement of low-quality assets worth IDR 1.3 trillion with an asset swap scheme so that it can improve KB Bukopin's performance," Shin said in his statement, quoted on Thursday, September 29.

Shin added, with the transaction, the company can reduce the number of low-quality assets. "This collaboration is expected to help KB Bukopin to remain consistent in managing low-quality assets," said Shin.

On the same occasion, PPA President Director Yadi Jaya Ruchandi said, this collaboration is our commitment to optimizing minority share ownership in KB Bukopin as mandated by the Ministry of SOEs to PPA. This collaboration also further strengthens the real role of PPA, which is trusted by national and global financial institutions as partners in managing low-quality banking assets.

PPA manages KB Bukopin's low-quality assets using an asset swap scheme, which is the exchange of low-quality assets for productive assets in the form of sukuk. In this case, PPA issues the said Islamic financial instruments in which the funds obtained will be used for corporate funds.

“The inventive approach of the asset swap scheme has proven to be able to solve the challenges faced by banks in managing low-quality assets effectively with measurable risk management. PPA also cooperates with relevant stakeholders to obtain optimal recovery," Yadi added.