will need a minimum of 300 million ringgit or around US$100 million....Jakarta (ANTARA News) - State-owned Bank Mandiri will soon open a branch in Malaysia with the status of subsidiary, the bank`s director of finance and strategy, Pahala N Mansuri, said.
"What we are still discussing is how to get a license and permit in Malaysia where we already have a remittance office. We are still discussing it with Bank Negara Malaysia," he said.
He said in accordance with relevant regulations in Malaysia, Bank Mandiri would set up a subsidiary that would operate as a general bank.
"Perhaps we still have to discuss it further but the subsidiary is expected to be in Kuala Lumpur and we hope the branch can operate as a general bank and as a subsidiary there," he said.
Pahala said besides matters related to the licensing question and and the formation of a subsidiary, the branch's minimum capital requirement and other facilities also still needed to be discussed further.
"We are still negotiating these matters there, We will need a minimum of 300 million ringgit or around US$100 million but we are still discussing it with Bank Negara Malaysia," he said.
He said the opening of the branch in Malaysia was part of efforts to deepen networks in Southeast Asia and in connecton with the creation of an ASEAN Economic Community in 2015.
He said Bank Mandiri was also considering opening a branch in China but this could be accomplished only through a long process.
"They have said we can get a license but our application has to go through several processing stages relating to such things as IT prepartaions, reporting system and other matters," he said.
Pahala said one of the requirements for establishing a branch in China was that in the first two years of operation, transactions at the Bank Mandiri branch that would be located in Shanghai must use foreign currencies, not the local yuan currency.
"But after two years, we will be allowed to do that," he said.
He said the opening of a branch in China would not as yet contribute maximally to Bank Mandiri`s growth as its focus so far was still on domestic growth.
But in line with the improving economy and number of Indonesian businessmen doing business in China it would be good for the bank to open a branch there.
"In terms of contribution. I think the benefit will not be direct as our focus in the next three to four years is still on the domestic economy but with the country`s economy becoming more open and more Indonesian businessmen doing business there, it would be a good (for Bank Mandiri to open a branch there)," he said.
(ANT)
Editor: Ade P Marboen
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