TEMPO.CO, Jakarta - Bank Rakyat Indonesia or BRI plans to increase its capital expenditure (capex) by 11 percent to Rp5 trillion next year. Bank official says that Rp2.4 trillion of the capex budget will be allocated to IT spending.
"The remainder will be allotted to branches and operating expenses," BRI finance director Haru Koesmahargyo said as Antara reported.
This year, BRI has a capex of Rp4.5 trillion, of which Rp2 trillion is allocated for IT spending. Also in 2016, BRI began operating the BRISat satellite, the world's first satellite designated for the banking industry.
According to Haru, next year's capex allocation of Rp5 trillion does not include the bank's budget for inorganic expansion. He said BRI plans to invest at least Rp2 trillion for acquisitions and raising subsidiaries' capital in 2017.
BRI is planning to acquire a securities firm once the government completes the establishment of a holding for state-owned financial companies. In 2017, BRI also plans to raise the capital of Asuransi Jiwa Bringin Sejahtera (Bringin Life) to Rp1 trillion and inject BRI Syariah and BRI Multifinance with Rp500 billion additional equities each.
FERY F | ANGELINA ANJAR