Update COVID-19 in Indonesia: 1,298,608 confirmed infections, 35,014 deaths (23 February 2021)
23 February 2021 (closed)
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Haru Koesmahargyo, Finance Director of Bank Rakyat Indonesia (BRI), said the company's new branch office in East Timor (Timor Leste), which was opened several months ago, already managed to open about 20,000 new accounts for local clients. Considering the limited time-span and the limited local population in the region, these results are very positive. Also in terms of transactions the East Timor branch shows good growth.
Koesmahargyo therefore estimates Bank Rakyat Indonesia (BRI) will see the full return of investment from the East Timor branch in the next two or three years. Rapid return of investment is also possible due to the relatively easy local capital requirements for the establishment of a bank branch in East Timor. Earlier, BRI said it set aside between IDR 30 - 50 billion (approx. USD $3 million) for the opening of the East Timor branch.
Based on BRI's latest financial statement (June 2017), its East Timor branch recorded total revenues worth IDR 161 million (approx. USD $12,000) in H1-2017. However, in terms of profit before tax it still recorded a loss of IDR 2.36 million. The branch's total assets were IDR 101.86 billion, while total liabilities were valued at IDR 104.23 billion.
BRI, the largest listed bank in Indonesia in terms of assets, has a total of three overseas branches on the Cayman Islands, Singapore, and East Timor. It also has two representative offices in Hong Kong and New York. Next year BRI wants to upgrade the Hong Kong representative office into a real office.
In the first half of 2017, BRI's unit in New York brought most overseas profit for the bank. In H1-2017 profit before tax of BRI's New York branch jumped 51.19 percent (y/y) to IDR 211.43 billion.
On the other hand, BRI's branch office in Singapore posted a decline in profit before tax of 51.68 percent (y/y) to IDR 6.44 billion. The Hong Kong office, however, posted a positive result, turning a IDR 10 million loss into IDR 109 million profit in H1-2017.
On Wednesday (30/08) shares of BRI were up 0.67 percent to IDR 15,075 by 14:30 pm local Jakarta time. So far this year its shares have surged 29.12 percent.
Stock Quote Bank Rakyat Indonesia - BBRI: