Thai lender Kasikornbank (KBank) has agreed to buy a 9.99% stake in Indonesia’s Bank Maspion for $20m.

Kasikornbank paid IDR615 ($0.05) per share for the deal, which marks its foray into Indonesian market.

Bank Maspion focuses on SME business and digital banking, which the Thai lender said are in line with its strategy.

Kasikornbank further noted that its partnership with Bank Maspion is ideal considering the latter’s network of 51 offices across major cities of Indonesia.

Kbank president Predee Daochai said: “KBank believes that its shareholding in Bank Maspion is the most strategic move to swiftly respond to business requirements of its customers and the Bank itself.”

Maspion Group president director and CEO Alim Markus said: “This alliance with KBank will serve as a stepping stone to many more future bilateral developments. It will provide an opportunity for Bank Maspion to explore KBank’s expertise of digital banking and SME banking operations, which will help elevate Bank Maspion’s service in the long run.

“Meanwhile, Bank Maspion’s service coverage in Surabaya, Jakarta, Semarang, Denpasar, Medan, Bandung, Makassar, Solo, Malang, Purwokerto and Palembang will provide greater access for KBank customers to financial and advisory services from local experts,” Markus said.