Bank BJB mulls South Africa entrance

The Jakarta Post, Jakarta | Business | Tue, October 30 2012, 8:42 PM

The nation’s biggest regional bank, Bank Pembangunan Daerah Jawa Barat dan Banten (BJBR), may open a branch in South Africa after it received an offer from the country’s consulate in Indonesia to expand its lending business there.

The proposal came after a meeting between the South African Chamber of Commerce and Industry and the Indonesian Chamber of Commerce and Industry in Bandung, West Java, in September, according to BJBR president director Bien Subiantoro.

“This is an interesting offer because countries tend to be protectionist against foreign banks. We have asked the South African embassy in Indonesia, which confirmed the offer and said that it could be followed up if we were interested,” he told reporters on Tuesday.

The South African government so far has suggested three banks that could be taken over or acquired by Bank BJB, said Bien, who plans to go to South Africa in December to explore opportunities there.

“If realized, we would focus on trade finance, because as far as I know there are many Indonesian communities in South Africa,” he added.

Bank BJB released its third quarter financial report last week, showing Rp 945.6 billion (US$98.19 million) net income,18 percent higher than last year’s figure. (sat)