Shares Are Owned By The Conglomerate Hartono Brothers' Djarum Boss, Denies Wanting To Set Up A Cryptocurrency Exchange With Binance And Telkom

BCA Building. (Angga Nugraha/VOI)

JAKARTA - PT Bank Central Asia Tbk (BBCA) or BCA denied that it would form a new crypto exchange in Indonesia in collaboration with Binance Holding Ltd and PT Telkom Indonesia Tbk (TLKM).

"In connection with the news regarding "Binance Weighs Crypto Venture With Richest Indonesian Family", one of which discussed BCA, we can convey that the information is not true. BCA management has never discussed this matter", BCA management wrote, quoted on Monday, December 13.

Previously reported by Bloomberg, Binance Holdings is in talks with Indonesia's richest family, the Hartono Brothers, and a state-owned telecommunications operator to set up a crypto exchange. The Hartono family, who are also owners of the Djarum company, are the largest shareholder in the largest national private bank, BCA.

According to data on the BCA official website, as of October 31, 2021, the Hartono family, through PT Dwimuria Investama Andalan, controlled 54.94% of the public company's shares. Budi Hartono and Michael Hartono are currently still the richest people in Indonesia, according to Forbes magazine in 2021.

If the partnership between Binance, BCA, and PT Telkom is realized, it will be the largest partnership in the crypto industry in the Asian region. The partnership between Binance, BCA, and the country's largest telecommunications operator will spur wider adoption of cryptocurrencies in Indonesia, the world's fourth most populous country.

Moreover, in Indonesia, many adults have little access to bank loans and other forms of formal finance. The deal will give Binance a greater foothold in the fast-growing economy. Also, it can enable the country's most powerful entrepreneurs to engage in digital currencies.

“BCA may enter into partnerships with Binance through other related entities”, said one of the sources, quoted by Bloomberg.

Meanwhile, a Binance spokesperson declined to comment on that, but in general, it said that it supports the sustainable growth of the crypto industry globally and continues to seek business opportunities.

"We support the continued growth of the blockchain industry globally and we are continuously looking for business opportunities in every country", the spokesperson said.

Telkom Indonesia, said Bloomberg, is currently studying new opportunities to partner with influential companies through MDI Ventures, given the potential in the blockchain and crypto market in Indonesia, according to Ahmad Reza, Senior Vice President of Telkom Indonesia.

In Indonesia, Binance already has an investment in Tokocrypto, one of the largest exchanges in Indonesia for cryptocurrency trading. Meanwhile, the Djarum Group owns a venture company, GDP Venture, which recently invested in a crypto exchange company from New Zealand, Easy Crypto. The fresh funds obtained by Easy Crypto are used to accelerate the company's development and expand to Indonesia and other countries in Southeast Asia.