KDB Moving into Indonesia
The Korea Development Bank announced on Sept. 8 that it took over Tifa Finance in Indonesia in accordance with the agreement it signed with DSU Group in December last year to acquire 80.65 percent of the shares. Both sides successfully completed the procedure after eight months of coordination although COVID-19 delayed the due diligence and talks.
Established in 1989, Tifa Finance is a multi-finance company specialized in corporate lease finance. Even without a parent bank or a parent company based on manufacturing, it has successfully done business in corporate lending, lease finance, installment finance, sharia-compliant finance, and many more. Also, it is a multi-finance platform that is capable of handling development finance such as project and infrastructure finance with a minimum capital of one trillion rupiah. At present, lease finance accounts for 77 percent of its business, followed by sharia-compliant finance (18 percent) and consumer finance (1 percent).
The Korea Development Bank is planning to combine the Indonesian bank’s business with its specialties, such as corporate, infrastructure development, venture and innovative growth finance, in stages so that Tifa Finance can become a global leader in the industry.