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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] B Kookmin Bank’s Indonesian subsidiary has reduced its workforce and streamlined its branch network over the past year as part of efforts to improve operational efficiency and accelerate digital transformation.
According to local reports on June 9, the bank’s Indonesian unit had 2,265 employees as of end-March 2026, down by 662 employees, or 22%, compared to a year earlier. The number of sub-branches was also reduced by 21 to 120.
Kunardi Dharma Ri, CEO of the Indonesian unit, stated that the restructuring is part of ongoing efforts to build a more agile and sustainable organization, reflecting changing customer demand, evolving banking conditions, and the expansion of digital financial services.
While reducing smaller sub-branches, the bank increased the number of full-service branches to 29 and significantly expanded its ATM network from 31 to 154 units. The company is also focusing on strengthening digital capabilities and integrating offline and online channels to enhance customer service competitiveness.
As part of the restructuring process, two executives—Retail Banking Director Robby Mondong and Compliance Director Dodi Wijayanto—announced their resignations on June 3. The bank stated that their departures would not impact overall operations, with related decisions to be finalized at a shareholders’ meeting scheduled for June 25.
Despite cost-cutting efforts, financial performance weakened. The bank reported net profit of 10.7 billion rupiah (approximately $700,000) for the first quarter of 2026, sharply down from 352 billion rupiah a year earlier.
General administrative expenses declined to 174.2 billion rupiah from 220.7 billion rupiah, but personnel costs rose to 196.2 billion rupiah from 166.0 billion rupiah over the same period.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
