BBCA - Records Venture Equity Investment of IDR353 bn

Bank Central Asia (BBCA) continues to support the development of the digital economy in Indonesia by providing capital to digital start-up companies to encourage a larger business scale. Through its subsidiary, Central Capital Ventura (CCV), which focuses on venture capital, CCV has invested in startups in Indonesia. As of May 2023, CCV had invested in 23 startups with a total investment value of IDR353 bn. CCV invests in companies that finance technology (fintech) and non-fintech companies. CCV details the investment that has been given to fintech companies and fintech-enabled companies and explores the potential for embedded fintech from non-fintech startup companies. (Source : Kontan) Comment : We might witness growth on digital economy to continue. Yet, we see growth from non-ventures likely to be more promising. High growth should be followed with better and manageable risk as well as improving asset quality sustainability. Despite small in size, channeling asset portion to riskier debtor profile could jeopardize overall loan portfolio and in turn will make provisions crawled up. Yet, big banks should have more than enough buffer to counter with the potential risk. Additionally, we expect the venture growth will create more positive impacts than drawbacks