Financial institution JB expands its horizons in Indonesia through the acquisition of a subsidiary from KB Bank.
JB Financial Group Expands into Indonesian Market
JB Financial Group, a regional financial service provider based in South Korea, is making a significant move into the Indonesian financial market. The company has announced plans to acquire an 85% stake in PT KB Bukopin Finance, an Indonesian installment financing subsidiary, for approximately 29 billion won ($21 million).
PT KB Bukopin Finance, which specializes in installment financing, turned profitable last year, posting a net profit of 1.05 billion won. This acquisition, which requires approval from Indonesian financial authorities and is estimated to take about a year, is a strategic move for JB Financial.
In addition to the acquisition, JB Financial Group is securing a 40% stake in the Indonesian operations of the Korean AI fintech company AIZEN. This partnership aims to build a localized business model by combining JB Financial's expertise in auto financing and risk management with AIZEN’s AI-driven fintech solutions and local market data.
AIZEN operates by acquiring electric bikes and leasing them to major Southeast Asian mobility platforms like Grab and Gojek, using operational data to offer financial insights. The partnership with AIZEN reflects JB Financial’s strategy to integrate existing financial services with future growth engines such as fintech and sustainable mobility.
Through this strategic collaboration, JB Financial plans to expand its business portfolio from domestic auto finance to new areas such as electric two-wheeled vehicle installment financing and retail financing in Indonesia. If successful, JB Financial Group plans to implement the business model in Vietnam, Cambodia, and Thailand, respectively.
Chairman Kim Ki-hong emphasized that JB Financial’s expansion into Indonesia is about creating a shared growth model with domestic fintech companies venturing overseas, rather than simple affiliate expansion. This aligns with JB Financial Group’s ongoing overseas strategy demonstrated by its affiliates in Cambodia, Vietnam, and Myanmar.
In the first half of 2025, JB Financial posted a net profit of 370 billion won, slightly higher than the previous year. In the April-June period alone, JB Financial logged 208 billion won in net profit, up 5.5 percent on-year. The entry into the Indonesian market is not just about expanding overseas affiliates, but building a co-growth model with a Korean fintech company.
The risk associated with the partnership is practically negligible, making it a very solid business model. The use of electric vehicle financing also positions JB Financial Group within the growing green mobility sector in Southeast Asia.
In summary, JB Financial Group's expansion into Indonesia hinges on the acquisition of KB Bukopin Finance and strategic collaboration with AIZEN fintech to diversify offerings into installment financing for electric two-wheelers and retail, aiming for a localized, tech-enhanced growth model with strong ties to mobility platforms like Grab. If successful, JB Financial Group plans to implement this business model in other Southeast Asian countries.
- JB Financial Group's expansion strategy in Indonesia involves not only acquiring PT KB Bukopin Finance to diversify into installment financing for electric two-wheelers and retail, but also securing a partnership with AIZEN, a Korean AI fintech company, to leverage technology for a localized, tech-enhanced growth model.
- The strategic collaboration between JB Financial Group and AIZEN, as part of JB Financial's overseas strategy, focuses on integrating future growth engines such as fintech and sustainable mobility, while minimizing risk and positioning the company within the growing green mobility sector in Southeast Asia.
