ABN AMRO opens two new branches

ABN AMRO opens two new branches

JAKARTA (JP): The Netherlands-based ABN AMRO Bank will open
two new branches at the end of this month in the South Sulawesi
provincial capital of Makassar and in the East Kalimantan town of
Balikpapan, according to its Indonesia country manager Pieter van
den Akker.

"We'll keep expanding. We have a long-term strategy here," he
told a small media gathering on Thursday.

With the opening of the new offices, ABN AMRO will have 15
branches throughout the country, making it the largest operation
among foreign banks in Indonesia.

Van den Akker said Balikpapan was an attractive market for its
corporate and customer banking services, particularly with the
strong oil and gas industry in the town.

He said Makassar (previously Ujungpandang) was also an
attractive market because many consumer goods companies had
started to expand their operations into the city to cater for the
South Sulawesi market.

ABN AMRO has been in Indonesia for more than 170 years. Last
year it opened four branches at a time when other foreign banks
got cold feet as the country tumbled into its worst economic and
political crisis in three decades.

The bank traditionally provides corporate banking services,
but in the past four years it has entered the customer banking
business for upper end customers.

Van den Akker said his bank's lending strategy over the next
six to 12 months would largely focus on existing clients, both
multinationals and local exporting businesses with good track
records.

"It's difficult to approve new projects right now," he said.

He said the peaceful democratic presidential election last
month and improving relations with the International Monetary
Fund augured well for the country's economic recovery as it had
restored investor confidence.

But many foreign investors would still be watching for further
(political and economic) developments he said, pointing to
developments in the restive province of Aceh and in the country's
bank restructuring program.

The Acehnese people, long suppressed during the 32-year regime
of former president Soeharto, have stepped up pressure to demand
a separation of the resource-rich province from Indonesia, which,
if realized, some fear may lead to the disintegration of the
state.

Van den Akker added the fear of the so-called Y2K computer
disaster, which might occur at the turn of the century, has kept
foreign investors from entering Indonesia.

"Foreign investors may start coming in next year," he said.
(rei)