BANKING - Maybank in Indonesia for the long term

MALAYAN Banking Bhd (Maybank), the country's largest lender, will continue to invest and expand in neighbouring Indonesia despite the anti-Malaysia sentiment of a few Indonesians.

Its president and chief executive officer Datuk Seri Abdul Wahid Omar is unfazed by the demonstrations which have taken place and considers them as isolated cases.

He said the bank intended to be in Indonesia for the long term and would continue to invest there.

"We are now opening one new branch a week in Indonesia ... will grow 450 branches within two years," Abdul Wahid told reporters at Maybank's Raya Open House in Kuala Lumpur last Saturday.  Bank Internasional Indonesia (BII), which Maybank acquired in 2008 for RM7.9 billion, now has 294 branches. A year ago, it had 250.

Last month, Malaysian companies operating in Jakarta became the targets of Indonesian demonstrators.

People's Defence of Democracy (Benteng Demokrasi Rakyat, or Bendera), which led the anti-Malaysia protest, had planned demonstrations outside the CIMB Niaga branch and the Petronas petrol station in the capital city.

Abdul Wahid said the incidents were minor and would not deter long-term investors like Maybank.

He added that the bank was committed to regional growth, including in Indonesia, the biggest country in the Association of Southeast Asian Nations (Asean).

"As we move towards an integrated economy of Asean by 2015, Indonesia will be a major part of that economy. If you believe in the Asean region, you must have a strong presence in key economies, including Indonesia," he said.

Source : http://www.btimes.com.my/Current_News/BTIMES/articles/25INDON-2/Article/ - Sept 27, 2010