Indonesia’s state-owned lender Bank Mandiri is reviewing plans to expand in Malaysia and Singapore, reports The Jakarta Post.
The move comes after the Indonesian Financial Services Authority (OJK) and Bank Indonesia inked a deal with Malaysia’s central bank to support banking integration in the ASEAN region.
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The deal relaxes restrictions on operation of Indonesian banks in Malaysia, and comes with reciprocal priniciples.
The agreement is expected to reduce the minimum capital funds needed to set up a fully licensed branch, which presently is MYR 300m ($85.6m).
Bank Mandiri vice president director Riswinandi said, "We see the agreement as a positive step, which offers an opportunity for us to look deeper at our business potential as Bank Mandiri plans an expansion in neighboring countries."
Malaysia allowed Bank Mandiri to conduct remittance operation through Mandiri International Remittance, its local subsidiary. Riswinandi categorized the business as "a limited retail business".
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By GlobalDataBank Mandiri is also eyeing expansion plans in Singapore, where it already operates a wholesale business through its Bank Mandiri Singapore Branch.
