Mandiri Plans Expanding to Philippines, Meets Two Local Banks
8 August 2017 19:18 WIB
TEMPO.CO, Jakarta - State - owned Bank Mandiri (IDX: BMRI) is approaching two Philippine banks. The bank plans to expand its businesses to the neighboring country by acquiring their banks.
Mandiri's distribution director Hery Gunardi said the company has not decided whether they will acquire both banks or just one. Hery is targeting for the expansion to happen in the first half of 2018.
Read: Bank Mandiri Spends Rp936bn to Open Malaysian Branch
"We are conducting a due diligence," he said in Jakarta on Monday, August 7.
The acquisition plan was the result of the signing of a Letter of Intent (LOI) between the Financial Services Authority (OJK) and the central bank of the Philippines, Bangko Sentral Ng Pilipinas (BSP) in June. Bank Mandiri said it will take part in the agreement as a Qualified ASEAN Bank (QAB).
Bank Mandiri will also expand its businesses to Malaysia. Hery said the company will set up a branch office there. The expansion process is now entering the licensing stage.
In Bank Mandiri's 2017 Business Plan (RBB), the company allocates Rp2.5 trillion to Rp4 trillion of its capex for non-organic spending.
VINDRY FLORENTIN
