Bank denies claims of undervalued takeover, says process was transparent and market-based.

PT Bank Central Asia Tbk (BCA) has firmly rejected allegations that the 2003 acquisition of 51% of its shares by the Djarum Group was manipulated, insisting the transaction reflected market value and was conducted transparently under state oversight.

Disputed Valuation Claims

Corporate Secretary I Ketut Alam Wangsawijaya clarified that the figure of Rp117 trillion often cited as BCA’s market value at the time was misleading. He explained that the number referred to total assets, not market capitalization. Based on average share prices on the Indonesia Stock Exchange in 2003, BCA’s market value stood at around Rp10 trillion.

Tender Process Under BPPN

The acquisition of 51% of BCA shares by the FarIndo consortium—linked to the Djarum Group—was conducted through a transparent tender supervised by the Indonesian Bank Restructuring Agency (BPPN). The government had taken over BCA shares following the Asian financial crisis and the controversial Bank Indonesia Liquidity Assistance (BLBI) program in the late 1990s.

BLBI Crisis Context

During the 1997–1998 financial crisis, BCA suffered a bank run and received Rp31.99 trillion in BLBI funds. Ownership was later transferred from the Salim family to the government as repayment. The state also injected Rp60 trillion in recapitalization bonds to stabilize the bank, sparking debate over whether the subsequent sale to private investors undervalued BCA.

Allegations of State Losses

Critics, including the late Kwik Kian Gie, argued that the government’s handling of BCA’s shares caused massive losses. He calculated that the state effectively put in Rp88 trillion—through BLBI debt, recapitalization bonds, and other support—before selling the controlling stake for just Rp10 trillion, suggesting a loss of Rp78 trillion.

BCA Denies Outstanding Debt

Addressing another controversy, BCA dismissed claims that it still owed Rp60 trillion to the state. Ketut stressed that this figure referred to government bonds held as assets on BCA’s balance sheet, all of which were settled by 2009. “The acquisition and subsequent operations complied fully with applicable laws and market mechanisms,” he emphasized.

Broader Implications

The renewed scrutiny over BCA’s acquisition reflects ongoing sensitivities around Indonesia’s BLBI legacy and questions of fairness in crisis-era privatizations. For both Indonesians and Singaporeans, the clarification underscores the lasting impact of financial sector restructuring on regional trust and cross-border investment confidence.

By reiterating the transparency of the 2003 acquisition, BCA seeks to close the chapter on longstanding allegations of manipulation and undervaluation. The case highlights the enduring shadow of the BLBI crisis on Indonesia’s banking sector, while reinforcing the importance of accountability and clarity in state-led financial recoveries.

Sources: Tirto.id (2025) , Kompas (2025)

Keywords: BCA Acquisition, Djarum Shares, BLBI Case, BCA Clarification, Banking Transparency, Indonesia Finance