In connection with the proposed acquisition of Bank Danamon by DBS..."
Jakarta (ANTARA News) - Singapore`s DBS Group said it hopes Bank Indonesia (BI) announced its approval for its proposal to acquire Bank Danamon.

DBS said it knew Bank Indonesia Governor Darmin Nasution already said the Indonesian central bank approved its proposal to acquire Bank Danamon, the country`s 6th largest lender.

The plan is DBS would acquire 40 percent of the shares of Danamon with the possibility of acquisition of more shares on condition of reciprocity between Indonesia and Singapore in banking agreement.

However, official announcement of the approval in writing is not forthcoming from Bank Indonesia, DBS said in its website.

Earlier BI Governor Darmin Nasution said the central bank would facilitate the process of acquisition but demanded reciprocity that the Monetary Authority of Singapore would support operation of three Indonesian state banks in Singapore.

"In connection with the proposed acquisition of Bank Danamon by DBS, we ask Singapore to facilitate expansion of three of our state banks , Bank Mandiri, BRI and BNI," Darmin told lawmakers in a meeting here on Tuesday.

He said currently Bank Danamon is 67.37 percent owned by Asia Financial Indonesia (AFI), a Singapore based company with the rest owned by investing public.

AFI is wholly owned by Fullerton Financial Holding (FFH), which is a subsidiary of Temasek, which is owned by the government of Singapore.

Darmin said the DBS Group itself is also a subsidiary of Temasek, therefore, acquisition of Danamon by the DBS Group is tantamount to transfer of ownership over the bank from AFI to the DBS Group.

In the process of acquisition, the DBS Group still has to comply with the new Indonesian regulation in the financial sector that allows a foreign investor to acquire only up to 40 percent of an Indonesian.

"The AFI`s ownership of Danamon would be reduced from 63.37 percent to 40 percent by the time of the take over by DBS," Darmin said.

DBS, however, wants to have control of the bank as much as the control held by AFI.

"This gives us an opportunity to demand reciprocity," Darmin said , adding, "DBS has to comply with the regulation that they may not acquire more than 40 percent of the shares of an Indonesian bank."

He said he had talked with MAS and asked it to facilitate the operation of thee Indonesian state banks in that country.

"The latest developments in the planned acquisition of Danamon by DBS, is that BI is processing the proposal in line with the regulation. BI could approve acquisition up to 40 percent and if DBS wants more than 40 percent, BI would, apart from taking into account the regulation , would see the commitment by MAS to support operation of our banks in that country," he said.

Legislator Maruarar Sirait said MAS has to bring to reality its commitment if it wants DBS maintain the 63.37 percent stake in Danamon. (Uu.H-ASG/H-YH)

Editor: Priyambodo RH
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