Indonesian state lender Bank Negara Indonesia (BNI) is preparing to open an overseas branch in Seoul to serve Indonesian customers living in the country.
BNI president director Achmad Baiquni said: "Now that we are about to open a branch in Seoul, we hope we can increase our share of the Indonesia-South Korea trade financing market."
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The lender has prepared an equivalent of $30m in funds as initial capital for the branch, as required by South Korean regulations.
The move follows Indonesia Financial Services Authority (OJK) signing an agreement with its South Korean counterparts to facilitate the expansion of financial firms in both countries
OJK chairman Muliaman Hadad said: "The South Korean financial authority has granted the license for BNI to open a branch in Seoul."
"The signing of the MoU marks the beginning of a mutually-beneficial cooperation in the field of monetary supervision between the OJK and the FSS.
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By GlobalData"Now Indonesian or South Korean banks can expand more easily. Their presence can also trigger higher bilateral-trade financing activities between Indonesia and South Korea, whose outstanding value now stands at more than $30bn," Hadad said.
