Aussie bank to form local venture<\/p>\n
SYDNEY (AFP): Commonwealth Bank of Australia Ltd. (CBA) said
\nyesterday it had received approval in principle from Indonesia's
\nMinistry of Finance to establish a joint-venture bank in
\nIndonesia.<\/p>\n
Managing director David Murray said the CBA would join forces
\nin an equal partnership with BII, Indonesia's third largest
\nprivate bank.<\/p>\n
The joint venture, PT Bank BII Commonwealth, is capitalized at
\nRp 150 billion (US$68 million) and will be based in Jakarta.<\/p>\n
It will initially target Indonesian, multinational corporate
\nand commercial clients but Murray said the consumer market
\noffered significant opportunities over the longer term.<\/p>\n
He said the development was part of the Commonwealth Bank's
\nstrategy of expansion in the Asian region. It already has offices
\nin Beijing, Shanghai and Hanoi.<\/p>\n
The 50-50 ownership of the new bank will be a first for
\nIndonesia. Other joint venture banks are controlled by the
\nforeign partner, usually through an 85 percent equity stake.<\/p>\n
The Commonwealth Bank said the equal shareholder commitment in
\nBank BII Commonwealth emphasizes the separate capabilities of
\neach partner.<\/p>\n
Murray said the partners will share client access, products,
\ntechnology and distribution capabilities.<\/p>\n
\"Asian-related assets, transactions and income are
\nincreasingly important for the bank,\" Murray said.<\/p>\n
\"This joint venture gives the bank access to the dynamic
\nIndonesian banking market with a partner of recognized quality
\nand strength.\"<\/p>\n
Commonwealth Bank will retain its autonomous representative
\noffice in Jakarta.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/aussie-bank-to-form-local-venture-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}