Hyundai Capital Services Inc., financing unit under South Korean auto giant Hyundai Motor Group, will join hands with Shinhan Bank and Sinar Mas Group to enter Indonesia’s credit finance market.

Hyundai Capital Services announced Wednesday that it will establish Hyundai Capital Indonesia after acquiring PT Paramitra Multifinance, a financial company specializing in local credit in Indonesia.

The largest shareholder of Hyundai Capital Indonesia will be Hyundai Capital Services with 75.1 percent stake, followed by Sinar Mas Group, Indonesia’s fourth-largest conglomerate, with 15 percent, and Shinhan Bank Indonesia with 9.9 percent.

Indonesia is one of the countries showing high growth, with its economy expanding 5.31 percent last year, a nine-year high.

It also has the fourth-largest population in the world at 277.53 million.

Yet, the country lacks access to financial services, making it a blue ocean for financial firms.

Indonesia, in particular, is considered a strategic hub for Hyundai Motor Group as it is home to Hyundai Motor Co.’s South Asian production and sales base.

Hyundai Capital Services opened an advisory entity in Indonesia in 2020 and provided market research and financial advisory services. The newly launched subsidiary will provide a number of auto finance services in the country.

“Hyundai Motor Group’s status in Indonesia is increasing daily, with Hyundai Motor becoming the top seller in the Indonesian electric vehicle market,” said an official from Hyundai Capital Services. “With the new entity, we will make various efforts with our partners to help more Indonesian customers utilize Hyundai Capital’s affordable auto finance services.”

Sinar Mas Group ? founded in 1938 ? is engaged in a wide range of businesses including insurance, resources, food, energy, and telecommunications. It owns more than 50 financial subsidiaries.

Shinhan Bank, which entered Indonesia in 2015, will play a part by making the interest rates of local products more competitive and providing stable funding.

Hyundai Capital Services currently operates a total of 16 entities and two branches in 14 countries, including the United States, Canada, the United Kingdom, Germany, and Brazil.

After achieving 130 trillion won ($96.87 billion) in total global assets last year, the company is continuing its aggressive advances into overseas markets in line with Hyundai Motor Group’s global strategy.

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