KB Bank taps parent for $123M credit line as Indonesia tightens
What's the deal? KB BankDealroom has a profile for this one. Try Dealroom → has secured a Rp 2 trillion ($123 million) credit line from its parent, South Korea's KB Financial GroupDealroom has a profile for this one. Try Dealroom →. It is post-IPO debt aimed at shoring up liquidity as bank funding tightens.
Why now? Bank Indonesia recently raised its benchmark rate by 100 basis points, squeezing liquidity across the sector. Finance director Jang Hyuk Im said state-owned and foreign banks have already begun adjusting rates, prompting KB Bank to lift deposit rates and lean on parent support.
What's the endgame? The facility gives KB Bank room to fund daily operations without relying on more expensive market funding. The bank has raised deposit rates to about 6% while continuing to hunt for cheaper funding sources, according to president director Kunardy Darma Lie.
This is another quick top-up in a long line of parent support. KB Financial Group has now poured a total of Rp 50 trillion into the Indonesian unit, the former Bank KB Bukopin. "Indonesia is considered a second mother market, a market seen as highly potential," Jang said.
What could go wrong? Tighter liquidity is already reshaping the bank's ambitions. KB Bank will not chase the 15% credit growth target in its business plan, instead adjusting to Bank Indonesia's 8% to 12% range and prioritising loan quality.
"The macro conditions have changed. That's why we emphasise quality more. We don't want to force lending just to hit targets," Kunardy said.
The signal: The injection is modest against earlier moves — a Rp 3 trillion perpetual subordinated loan in mid-2025 and a roughly Rp 4.7 trillion rights issue in 2021 — but it underlines KB Financial Group's continued commitment as its Indonesian arm shifts from balance-sheet repair toward cautious growth in a competitive market.
Read more: katadata.co.id
