Member Of Commission XI Of The House Of Representatives Proposed BRI Acquisition Of BPD Throughout Indonesia

Member of Commission XI DPR RI Eriko Sotarduga. (Photo: YouTube Screenshot)

Member of Commission XI DPR RI Eriko Sotarduga suggested PT Bank Rakyat Indonesia (Persero) Tbk to acquire Regional Development Banks (BPD) throughout Indonesia. This is one of the steps to transform business.

Eriko argues that with the sophistication of technology, it will have an impact on the competition for lending will be even tighter.

"The concept of banking has changed greatly, with this extraordinary technology, how will this competition be? Later peer to peer lending can all (give credit) no longer need for banking. I suggest the President Director, why does BRI not acquire all BPDs in Indonesia?," said Eriko at the Commission XI Hearing Meeting (RDP) with the President Director of PT BRI, quoted on Thursday, January 26.

Eriko added, both BRI and BPD share the same market so that it is very possible to carry out acquisitions and continue by converting BPD offices into BRI branches.

He continued, if accumulated, the assets of all BPDs in 34 (perty-four) provinces are in the range of Rp. 1000 trillion with only a few BPDs recorded having a large value.

On the other hand, he also mentioned the resilience of several BPDs with small capital in facing future competition.

The BPD-BPD has a small capital, how can it survive? Why doesn't BRI acquire all of this? BRI will become the largest KUR bank in the world. The share (market) is the same. Why not acquired and then the office will become a branch office for all of BRI," he continued.

Eriko also expressed his support for facilitating BRI meetings with regional heads.

He predicts that regional heads will welcome this, especially many regions that must provide additional capital to BPD every year.

With this step, he is optimistic that BRI's assets will become even bigger.

"Later, we will facilitate (meetings) with regional heads? Instead of them being dizzy, each year we will increase capital. Where do you come from? Small is beautiful but big is necessary. BRI, Bank Rakyat Indonesia. Those who have Indonesian people who have more than 270 million. If the acquisition is so that later become a small-small digital bank, what will they do?, "said Eriko.

For information, there are four bank classifications based on the amount of core capital which are later referred to as Book Banks 1, 2, 3, and 4.

Book Bank One (1) is a bank with a core capital value of below IDR 1 trillion, while Book Bank Two (2) has core capital in the range of IDR 1 trillion to IDR 5 trillion.