Bank DKI to get $47-M capital infusion

Bank DKI will receive a Rp 450 billion ($47 million) capital injection from the city of Jakarta.

“If the need for capital exceeds that amount, Jakarta is ready to increase it,” said Jakarta Governor Joko Widodo.

“Bank DKI’s assets are growing very fast. From an equity standpoint, it needs more injection. If there is a huge prospect [for growth], why not [add more]?” Joko said.

The governor also advised the lender to improve its prudent banking practices.

Mulyatno Wibowo, the marketing director of Bank DKI, said he expected the Rp 450 billion capital injection to be realized by March or April.

He noted that the bank was still seeking funds, as it is aiming to ramp up its capital by Rp 1.35 trillion this year.

The remaining Rp 900 billion, the marketing director added, could be secured via an initial public offering or another investment by the Jakarta administration.

Currently, Bank DKI’s core capital, or “tier one” capital, which includes equity funds and disclosed reserves, stands at Rp 1.02 trillion. Its capital adequacy ratio, which measures a bank’s financial health, is at 10 percent.

“The governor wants Bank DKI to be bigger,” Mulyatno said.

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