Hyundai Capital to acquire Indonesian financial firm

South Korea's Hyundai Capital announced on Wednesday it will acquire the Indonesian finance firm PT Paramitra Multifinance to enter the local market.

Based on this deal, the company plans to establish a local corporation Hyundai Capital Indonesia.

Hyundai Capital will command a 75.1% share of the new overseas corporation, with PT Sinar Mas Multiartha Tbk, the finance arm of Sinar Mas Group owning 15.0%, and PT Bank Shinhan Indonesia, a subsidiary of Shinhan Bank retaining 9.9%. 

PT Sinar Mas Multiartha Tbk will provide its local experience and expertise to assist in the strengthening and development of the auto financial services business. PT Bank Shinhan Indonesia, established in 2015, will be in charge of enhancing the competitiveness of local products and providing stable financing operations.

Indonesia is a key hub for the Hyundai Motor Group's future mobility strategy. In 2022, Hyundai Motor opened its first Southeast Asian production base in Indonesia, and since then, Hyundai Motor has been claiming the biggest market share in Indonesia's electric vehicle (EV) market.  

Building on its dominant position in Indonesia's electric car market, Hyundai Capital aims even higher.

"Hyundai Motor has come in at the top of the EV market in Indonesia," a Hyundai Capital source said. "We believe this acquisition will position Hyundai Capital to leverage our capabilities to serve more tailored auto financial services to the needs of local customers and partners."

Write to Mi-Hyun Jo at mwise@hankyung.com