MALAYAN Banking Bhd, Malaysia’s largest bank by assets, said it’s prepared to inject more funds into PT Bank Internasional Indonesia, aiming to double the unit’s asset size within five years.
“If we wish to double or triple the asset size, clearly we need to put in a bit more capital,” said Abdul Wahid Omar, chief executive officer of Maybank, as the Kuala Lumpur-based lender is known.
“We will be looking at doubling within five years.”
Any additional capital for Bank Internasional, which Maybank bought last year, would be financed by Maybank’s internally generated funds, Abdul Wahid said in the interview today.
Maybank spent more than US$2 billion buying bank stakes in Indonesia, Pakistan and Vietnam last year, seeking growth overseas amid increased competition.
Malaysian banks are now offering loans at rates that are “below the economic level,” Abdul Wahid said today. - Bloomberg
Wednesday, July 1, 2009
INDONESIA GIVES STATE BANK OF INDIA FOREIGN EXCHANGE STATUS
JAKARTA, Jun 30, 2009 - Bank Indonesia has finally granted the foreign exchange bank license to State Bank of India (SBI) Indonesia to facilitate trade between the two countries.
SBI Indonesia has to wait for two years to secure the license , said Rajive Saran, the president of the Indonesian unit of State Bank of India.
With the license, the bank could take a significant role in facilitating the bilateral trade , which is valued at around US$10 billion a year, Saran said.
Finance director of SBI Indonesia Sathyamurthy said trade between the two countries have grown fast but payment service is not yet efficient and takes a long time by payment agent.
Indonesia has continued to chalk up surplus in trade with India in the past five years.
SBI Indonesia has to wait for two years to secure the license , said Rajive Saran, the president of the Indonesian unit of State Bank of India.
With the license, the bank could take a significant role in facilitating the bilateral trade , which is valued at around US$10 billion a year, Saran said.
Finance director of SBI Indonesia Sathyamurthy said trade between the two countries have grown fast but payment service is not yet efficient and takes a long time by payment agent.
Indonesia has continued to chalk up surplus in trade with India in the past five years.
State Bank of India to Finance Indonesia-India Trade
JAKARTA -- State Bank of India, India's largest lender by assets, will serve as a foreign exchange bank to facilitate trade between India and Indonesia, handling about $350 million initially, an executive at the bank said Tuesday.
Subramanian Sathyamurthy, operations director at local unit PT SBI Indonesia, told Dow Jones Newswires that trade between India and Indonesia last year was worth $10 billion.
Given that SBI handles about 35% of total foreign exchange business in India, its potential market share share of bilateral trade between the South and Southeast Asian nations could eventually be $3.5 billion annually, Mr. Sathyamurthy said.
"Of this $3.5 billion, we aim to garner about 10% initially, which is a decent sum to start with," he said.
Mr. Sathyamurthy said SBI Indonesia previously functioned as a local bank but was given a license this week by Indonesian regulators to operate as a foreign exchange bank. The lender has been seeking such a license for several years.
India is a major importer of Indonesian export goods such as crude palm oil and coal. However, many export transactions are conducted via third parties in Singapore, as there are few local financial houses that specialize in trade and services between the two countries.
Officials at SBI Indonesia, which until last month was named PT Bank IndoMonex, have told local media previously that the bank would be able to offer trade finance and advisory services to Indian companies doing business in Indonesia, as well as remittance services to the Indian expatriate community here, which numbers about 10,000.
SBI owns 76% of SBI Indonesia.
SBI Indonesia has 10 branches in major Indonesian cities, and has said it plans to open more branches in years to come.
Mr. Sathyamurthy declined to comment on a media report Tuesday that said SBI is considering buying another bank in Indonesia, saying he had no knowledge of the matter.
India's The Economic Times reported that SBI is in talks with Indonesia's PT Bank Eksekutif Internasional to acquire a majority stake in it as a strategic investment.
Bank Eksekutif has 13 branches in Indonesia and 491 employees, the report said.
Subramanian Sathyamurthy, operations director at local unit PT SBI Indonesia, told Dow Jones Newswires that trade between India and Indonesia last year was worth $10 billion.
Given that SBI handles about 35% of total foreign exchange business in India, its potential market share share of bilateral trade between the South and Southeast Asian nations could eventually be $3.5 billion annually, Mr. Sathyamurthy said.
"Of this $3.5 billion, we aim to garner about 10% initially, which is a decent sum to start with," he said.
Mr. Sathyamurthy said SBI Indonesia previously functioned as a local bank but was given a license this week by Indonesian regulators to operate as a foreign exchange bank. The lender has been seeking such a license for several years.
India is a major importer of Indonesian export goods such as crude palm oil and coal. However, many export transactions are conducted via third parties in Singapore, as there are few local financial houses that specialize in trade and services between the two countries.
Officials at SBI Indonesia, which until last month was named PT Bank IndoMonex, have told local media previously that the bank would be able to offer trade finance and advisory services to Indian companies doing business in Indonesia, as well as remittance services to the Indian expatriate community here, which numbers about 10,000.
SBI owns 76% of SBI Indonesia.
SBI Indonesia has 10 branches in major Indonesian cities, and has said it plans to open more branches in years to come.
Mr. Sathyamurthy declined to comment on a media report Tuesday that said SBI is considering buying another bank in Indonesia, saying he had no knowledge of the matter.
India's The Economic Times reported that SBI is in talks with Indonesia's PT Bank Eksekutif Internasional to acquire a majority stake in it as a strategic investment.
Bank Eksekutif has 13 branches in Indonesia and 491 employees, the report said.
Monday, June 22, 2009
BANK RAKYAT INDONESIA TO ISSUE BONDS
ANYER, West Java-
PT Bank Rakyat Indonesia (BRI) plans to issue bonds worth no less than Rp2 trillion (US$194 million) in the second semester this year to increase its capital and credit distribution.
"We have already made preparations for it," the bank`s head of planning and strategy division, Irianto, said in a press gathering here on Saturday.
He said he still had yet to wait for the financial report for the first semester at the end of June before implementing the plan.
He said it would take around one and a half months or two months to audit the first semester`s financial report and therefore the issuance of the bonds would only be done after July.
Irianto said no decision had been made yet on whether the bond would mature in five or ten years.
He said BRI had actually planned to issue bonds several semesters before but because economic conditions were not supportive the plan had been delayed.
The bank`s head of investor relationship desk, Haru Koesmahargiyo, said BRI until March 2009 still performed well growing above the average national banks.
"BRI`s assets grew 24.78 percent, third party funds up 27.23 percent and credit rose 39.51 percent while profit increased 22.02 percent," he said.
Haru said the value of BRI`s asssets reached Rp250.14 trillion while its outstanding credit Rp165.23 trillion, third-party funds Rp203.11 trillion and net profit Rp1.72 trillion.
The bank`s capital adequacy ratio was recorded at 14.91 percent while its non-performing loan 3.24 percent and its loan to deposit ratio at 81.35 percent.
PT Bank Rakyat Indonesia (BRI) plans to issue bonds worth no less than Rp2 trillion (US$194 million) in the second semester this year to increase its capital and credit distribution.
"We have already made preparations for it," the bank`s head of planning and strategy division, Irianto, said in a press gathering here on Saturday.
He said he still had yet to wait for the financial report for the first semester at the end of June before implementing the plan.
He said it would take around one and a half months or two months to audit the first semester`s financial report and therefore the issuance of the bonds would only be done after July.
Irianto said no decision had been made yet on whether the bond would mature in five or ten years.
He said BRI had actually planned to issue bonds several semesters before but because economic conditions were not supportive the plan had been delayed.
The bank`s head of investor relationship desk, Haru Koesmahargiyo, said BRI until March 2009 still performed well growing above the average national banks.
"BRI`s assets grew 24.78 percent, third party funds up 27.23 percent and credit rose 39.51 percent while profit increased 22.02 percent," he said.
Haru said the value of BRI`s asssets reached Rp250.14 trillion while its outstanding credit Rp165.23 trillion, third-party funds Rp203.11 trillion and net profit Rp1.72 trillion.
The bank`s capital adequacy ratio was recorded at 14.91 percent while its non-performing loan 3.24 percent and its loan to deposit ratio at 81.35 percent.
Friday, June 12, 2009
Indonesia's BRI Syariah sees doubling in assets
JAKARTA -
Indonesian Islamic lender PT Bank Rakyat Indonesia Syariah (BRI Syariah) expects its assets to double to 3 trillion rupiah ($297.6 million) by the end of the year, the bank's top official told to reporters.
Indonesia is seen as a prime market for Islamic finance with around 85 percent of its population of 226 million people following Islam, although growth has been slow.
The central bank in January forecast that sharia banks would account for 3 percent of total banking industry assets this year, compared to just over 2 percent of the national banking assets in 2008, far lower than its neighbour Malaysia and Singapore.
"Our assets are at about 1.5 trillion rupiah and we hope they will increase to 3 trillion rupiah by the end of the year," chief director Ventje Raharjo said late on Thursday.
The world's largest populated Muslim country has been lagging in developing sharia banking, due to factors such as tax regulations and a lack of expertise.
The bank had also secured an additional 500 billion rupiah of funds to double its working capital to 1 trillion rupiah.
"It will be used for investment, strengthening the infrastructure and expanding business," Raharjo said.
He added the bank would focus more on low- and middle-income segments, in line with its parent company, PT Bank Rakyat Indonesia Tbk (BBRI.JK).
Most Islamic-based banks and sharia banking divisions in the country have provided financing for small- and medium- sized enterprises, focusing on agriculture, manufacturing, and trading sectors as well as business services.
Indonesia has five sharia banks and 25 commercial banks with sharia units, as of April 2009, central bank data showed. From Reuters, 12th June 2009
Indonesian Islamic lender PT Bank Rakyat Indonesia Syariah (BRI Syariah) expects its assets to double to 3 trillion rupiah ($297.6 million) by the end of the year, the bank's top official told to reporters.
Indonesia is seen as a prime market for Islamic finance with around 85 percent of its population of 226 million people following Islam, although growth has been slow.
The central bank in January forecast that sharia banks would account for 3 percent of total banking industry assets this year, compared to just over 2 percent of the national banking assets in 2008, far lower than its neighbour Malaysia and Singapore.
"Our assets are at about 1.5 trillion rupiah and we hope they will increase to 3 trillion rupiah by the end of the year," chief director Ventje Raharjo said late on Thursday.
The world's largest populated Muslim country has been lagging in developing sharia banking, due to factors such as tax regulations and a lack of expertise.
The bank had also secured an additional 500 billion rupiah of funds to double its working capital to 1 trillion rupiah.
"It will be used for investment, strengthening the infrastructure and expanding business," Raharjo said.
He added the bank would focus more on low- and middle-income segments, in line with its parent company, PT Bank Rakyat Indonesia Tbk (BBRI.JK).
Most Islamic-based banks and sharia banking divisions in the country have provided financing for small- and medium- sized enterprises, focusing on agriculture, manufacturing, and trading sectors as well as business services.
Indonesia has five sharia banks and 25 commercial banks with sharia units, as of April 2009, central bank data showed. From Reuters, 12th June 2009
Indonesia's Bakrie says to buy back Bumi shares
JAKARTA -
Indonesia's PT Bakrie & Brothers Tbk (BNBR.JK) plans to buy back shares in coal miner PT Bumi Resources (BUMI.JK) and property firm PT Bakrieland Development Tbk (ELTY.JK), a director said on Thursday.
The diversified group, whose interests range from plantations to telecoms and coal, struck a number of deals, including sale stakes, late last year to help repay around $1.2 billion in debt.
The politically connected group, controlled by the family of Indonesia's chief welfare minister Aburizal Barkie, has said its debts have been halved to the equivalent of $627 million. [ID:nJAK414315]
Asked about a report that the firm planned to spend $150 million on buying back shares in Bumi and Bakrieland, Bakrie & Brothers' Finance Director Yuanita Rohali said the firm had an option to buy back shares in the fourth quarter.
"We have the intention to exercise the options on their exercise date in the fourth quarter," Rohali told Reuters via email, adding it planned to buy around a 6.4 percent stake in Bakrieland and around a 4.2 percent stake in Bumi.
"We're still reviewing alternatives for the source of funds," Rohali said.
Shares of Bakrie & Brothers gained 3.3 percent on Thursday to close at 94 rupiah, while Bumi shares fell 1.1 percent to 2,225 rupiah and Bakrieland Development fell 3 percent to 315 rupiah.
The Jakarta Composite Index .JKSE fell 0.91 percent. From Reuters, 11th June 2009
Indonesia's PT Bakrie & Brothers Tbk (BNBR.JK) plans to buy back shares in coal miner PT Bumi Resources (BUMI.JK) and property firm PT Bakrieland Development Tbk (ELTY.JK), a director said on Thursday.
The diversified group, whose interests range from plantations to telecoms and coal, struck a number of deals, including sale stakes, late last year to help repay around $1.2 billion in debt.
The politically connected group, controlled by the family of Indonesia's chief welfare minister Aburizal Barkie, has said its debts have been halved to the equivalent of $627 million. [ID:nJAK414315]
Asked about a report that the firm planned to spend $150 million on buying back shares in Bumi and Bakrieland, Bakrie & Brothers' Finance Director Yuanita Rohali said the firm had an option to buy back shares in the fourth quarter.
"We have the intention to exercise the options on their exercise date in the fourth quarter," Rohali told Reuters via email, adding it planned to buy around a 6.4 percent stake in Bakrieland and around a 4.2 percent stake in Bumi.
"We're still reviewing alternatives for the source of funds," Rohali said.
Shares of Bakrie & Brothers gained 3.3 percent on Thursday to close at 94 rupiah, while Bumi shares fell 1.1 percent to 2,225 rupiah and Bakrieland Development fell 3 percent to 315 rupiah.
The Jakarta Composite Index .JKSE fell 0.91 percent. From Reuters, 11th June 2009
Northstar-Saratoga preferred for Indonesia's Elnusa
JAKARTA -
A consortium made up of Indonesian private equity firms Northstar Pacific and Saratoga Capital has been named the preferred bidder for a stake in oil services firm PT Elnusa Tbk, the arranger for the deal said.
Plans by contracting firm PT Tri Daya Esta's to divest its 37 percent stake in Elnusa (ELSA.JK) attracted several bidders, including state energy firm Pertamina, which has already has a 41 percent stake in Elnusa.
"Tri Daya Esta will immediately continue to complete the negotiation with Northstar-Saratoga consortium, which has been stated as preferred bidder," PT Bahana Securities said a statement late on Thursday.
Officials from Northstar or Saratoga were not immediately available for comment.
Bahana said the consortium was chosen because it offered a credible business plan and the best offer price, but did not elaborate.
The transaction is expected to be completed within eight to ten weeks.
Elnusa's shares fell 4.9 percent to 385 rupiah as of 0809 GMT, compared to a 0.23 percent fall in the broader market .JKSE. From Reuters, 11th June 2009
A consortium made up of Indonesian private equity firms Northstar Pacific and Saratoga Capital has been named the preferred bidder for a stake in oil services firm PT Elnusa Tbk, the arranger for the deal said.
Plans by contracting firm PT Tri Daya Esta's to divest its 37 percent stake in Elnusa (ELSA.JK) attracted several bidders, including state energy firm Pertamina, which has already has a 41 percent stake in Elnusa.
"Tri Daya Esta will immediately continue to complete the negotiation with Northstar-Saratoga consortium, which has been stated as preferred bidder," PT Bahana Securities said a statement late on Thursday.
Officials from Northstar or Saratoga were not immediately available for comment.
Bahana said the consortium was chosen because it offered a credible business plan and the best offer price, but did not elaborate.
The transaction is expected to be completed within eight to ten weeks.
Elnusa's shares fell 4.9 percent to 385 rupiah as of 0809 GMT, compared to a 0.23 percent fall in the broader market .JKSE. From Reuters, 11th June 2009
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