KB Kookmin (South Korea) almost certain will become new controlling shareholder of the troubled Bank Bukopin (BBKP), replacing Aksa Family (Bosowa Group), with the bank’s disclosure on Tuesday to issue 22.24 billion new shares without preemptive rights (PMTHMETD). It remains unclear, however, whether Taiwan’s Cathay Life will replace Dr Tahir as new controlling shareholder of Bank Mayapada (MAYA).

Decisions from the Financial Services Authority (OJK) allowing SMBC to control Bank BTPN and The Bangkok Bank to control Bank Permata with more than 40% shares have set the tone. Kookmin Bank (South Korea) is now looking for majority control over Bank Bukopin, while Cathay Life (Taiwan) seeks majority and controlling shares in Bank Mayapada. 

Bank Mayapada (MAYA), controlled by Dr Tahir, who is also member of advisory council for President Joko ‘Jokowi’ Widodo, was among the fastest growing bank with total assets of Rp93.4 trillion by Dec 31, 2019. We had several times wondered how the bank, which survived the 1997-1999 Asian financial crisis, became a ‘major bank’.

The fugitive Djoko Soegiarto Tjandra, a.k.a Joko Soegiarto Tjandra, colloquially known as the Joker, has been a hot topic for the past few days. Many wonder how Djoko could freely return to Indonesia, officially renew his electronic identification card (E-KTP), and register his Reconsideration (PK) petition in person at the South Jakarta District Court. Djoko remains a high-profile figure in the context of Indonesian business and politics. Perhaps, his political connection can help us understand this ridiculous development.

Joko Soegiarto Tjandra, otherwise known as Djoko Tjandra, was convicted in the Bank Bali cessie case and is an international fugitive. Joko only has to stay in prison for two years and only has to pay a fine of Rp15 million subsidiary three months in prison. In addition, the Rp500 billion saved in the escrow account seized by the prosecutors was to be returned to the State. 

Joko Tjandra’s appearance in public at the beginning of last month caused a stir across the country. Many are questioning how it is possible for a fugitive to return to Indonesia without anyone knowing other than his legal counsels. What happened is not surprising, though, knowing that Joko has always been nicknamed the Joker. There are many legal loopholes that cause debate and need to be answered, but thanks to this issue we are reminded again that after all these years Joko Tjandra remains powerful. Although the public knew Joko Tjandra because of the Bank Bali case, there were several other cases related to him, one of which is the case of default which caused prolonged dispute between Bank BRI and its Pension Fund against PT Mulia Persada Pacific, a part of Mulia group controlled by the Tjandra family.

Bank Bukopin (BBKP), which suffered liquidity issue in the past few months, has issued a fresh prospectus for the issuance of 4.66 billion new shares at Rp180 per share this morning. That means Bukopin will get fresh capital of Rp838.8 billion. Is it enough to restore public confidence in the bank, which is still controlled by Bosowa Group?

Bank Bukopin has reportedly settled issues with some depositors who failed to get their funds released from the bank due to liquidity problem. It is not entirely clear of what kind of settlement with the depositors, but the bank pointed to ‘technical assistance’ from Bank Rakyat Indonesia (BBRI) as one of key factors contributing to the improvement.

Connections and power politics matter! Some politicians campaign for ‘bail-out’ of Bank Bukopin (BBKP) using the government’s National Economic Recovery (PEN) funds because the bank is considered a bank for small-medium enterprises (SMEs). If you followed our series of articles, Bukopin is bank for ‘big boys’ to place funds (cash and time deposits).

We have earlier pointed to huge funds placed by State agencies and major state companies, especially electricity provider PT Perusahaan Listrik Negara (PLN), in Bank Bukopin, a bank controlled by Bosowa Group—-owned by the family of Aksa Mahmud, brother-in-law of former vice president Jusuf Kalla.