Erick Highlights Jago Bank, Digital & Dim of Building Rental Business

Jakarta, CNBC Indonesia – BUMN Minister Erick Thohir said the trend in the future is the number of digitization of transactions and the hectic pace of financial technology (fintech) services, including the presence of digital banks.

The founder of Mahaka Media even mentioned the presence of one of the pioneering digital banks in Indonesia, namely PT Bank Jago Tbk (ARTO), a bank that was acquired by banker Jerry NG and founder of Northstar Pacific Patrick Walujo from the Arto Hardy family.

“With now the number of digitization fintech, yesterday was born Bank Jago, a digital bank, what will happen. Yes, financing is getting cheaper but the consequence is that many branch banks will close, “said Erick at the 2021 HIMPI Working Meeting, Friday (5/3/2021).


“What is the relationship? If in the property business, those who previously had a building rented by the bank could be in the next 10 years not being rented by the bank again because the bank no longer needs outlets, no branches,” said Erick.

In the midst of this transformation trend, Erick emphasized that SOEs have five priorities to change completely in the face of change.

“So far, BUMN has been criticized by the ivory tower. Now we put in the cooperation ecosystem, but according to the core business of the BUMN and the partnership. The supply chain must be equally profitable. This is clear, apart from technology and others.”

“Even less important, why do I remind BUMN colleagues, imagine the first time I served as 159 BUMN subject to corruption cases, 53 suspects, this is because it is not creating a healthy investment ecosystem but based on a project base, not a business process. That is what I emphasize.”

“Then it is clear that there are three that we have discussed with the President [Jokowi] we are trying to improve the condition of BUMN so that it is easier to partner, namely in three areas, infrastructure, funding and market access, “said Erick.

[Gambas:Video CNBC]

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