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Salim Group set up funds to build fingerprint payments

Tinuku ~ The Salim Group which controls one of Indofood's giant food companies (IDX: INDF) is preparing to develop a new business in fintech. The Jakarta-based company headed by Anthoni Salim has invested billions of dollars to build an e-payment business and has set up a bank to support it.

Tinuku Salim Group set up funds to build digital payments business

This expansion into the digital business has already begun by acquiring 51 percent of Ina Perdana Bank (IDX: BINA) shares through several companies affiliated with Salim Group. Based on the acquisition registration report on April 27, 2017 included Indolife Pensiontama, Samudra Biru and Gaya Hidup Masa Kini.

"So this is to replace the cash payment system, it can use banking instruments, one of them is e-money, so to digitalization business," said Salim in Jakarta.

Salim Group plans to begin testing services internally for its 500,000 employees in the second half of 2017. This test will use fingerprint recognition technology developed by Salim Group's joint venture company with Tokyo-based Liquid.

In the test, the employee will create a bank account at Bank Ina and pay for items in the Indomaret store using the fingerprint reader connected to their account. Salim is reluctant to mention the value of investment for the development of this digital payment.

"Anyway trillions of rupiah," said Salim.

Other Indonesian giants have entered the digital business is Lippo Group which acquired NOBU Bank (IDX:NOBU) in 2010. Lippo is also an investor in Grab. Meanwhile, Sinarmas Group acquired a local bank in 2005 and named Sinarmas Bank (IDX:BSIM) is also preparing a digital service.

Salim Group has long been in the banking business. One of the first business lines they developed was Bank Central Asia aka Bank BCA (IDX: BBCA). In 1998 Salim Group sold BCA and shifted its focus on Indofood business.

The company has in the last two decades transformed into a company called Total Food Solutions with operational activities covering all stages of the food production process, processing of raw materials and final products available to the market.

Last year Indofood posted a 39.6 percent increase in net income to Rp4.14 trillion (US$311 million). The performance growth in 2016 was supported by the Company's sales increase of 4.2 percent to Rp66.75 trillion (US$5.0 billion) from the previous year of Rp64.06 trillion.
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