Commonwealth raises RI stake

Commonwealth raises RI stake

JAKARTA (JP): Commonwealth Bank of Australia announced on
Monday it has acquired 99 percent interest in its Indonesian
joint venture bank, Bank BII Commonwealth.

The Australian bank, which already owned 50 percent in the
joint venture bank, acquired the other 49 percent for A$13
million (about US$7.64 million).

The remaining 1 percent is held by a trust because under
Indonesian law an overseas company can't wholly own an Indonesian
company, a Commonwealth Bank spokesman said.

Llew Morris, the president of BII Commonwealth, said that the
joint venture bank would be relaunched using the Commonwealth
Bank global brand and would provide a wide range of retail
financial services.

"The full ownership by a strong parent like Commonwealth
allows us to invest further in building resources and new
technology to service our customers," Morris said in a statement.

The 50-50 joint venture with Bank Internasional Indonesia has
been operating in Indonesian since 1997. Commonwealth Bank,
through its recent merger with Colonial, also owns 50 percent of
the Indonesian life insurance company PT Astra CMG Life.(hen)