ANZ invests to accelerate growth
(30 March 2010 – Australia) ANZ’s chief executive officer, Mike Smith, has said that the bank will invest up to US$100 million (A$110 million) in capital in Indonesia during 2010 to complete the acquisition of the Royal Bank of Scotland's (RBS) retail and commercial businesses in Indonesia, and to accelerate organic growth.
Speaking from Jakarta, Mr Smith said that Indonesia’s economy has proven to be resilient during the global downturn because of the government’s management of the economy, its large domestic market and its relatively low dependence on external trade.
Economic growth in Indonesia is expected to reach approximately 5.6 percent in 2010.
Mr Smith added that the bank is optimistic about the economy’s prospects which are supported by the government’s commitment to infrastructure development and to continued economic reform.
There is no question that Indonesia stands out as a key part of the Asian growth story. ANZ expects urbanisation will see more than 50 million people move to cities in Indonesia over the next 20 years, second only in size to China’s urbanisation, Mr Smith highlighted.
Australia and Indonesia are increasingly close economic partners. The trade flow between the two countries totalled US$8.7 billion in 2008, up almost 10 percent on 2007.
Mr Smith noted that Indonesia’s own strengths in natural resources and agriculture mean it’s also well placed to benefit from Asia’s continued growth, which ANZ expects will be around 7 percent in 2010, excluding Japan.
Given this, Indonesia will be one of ANZ’s most important markets as part of its objective to become a super regional bank, Mr Smith added.
ANZ’s operations in Indonesia date back almost 40 years and the bank is also a major investor in Indonesia including its interest of approximately 39 percent in PT Panin Bank.
ANZ has said it is on track to complete the acquisition of the RBS retail and commercial businesses in Indonesia in June 2010, subject to regulatory approval; adding that this is a unique opportunity for ANZ to expand and strengthen its presence in Indonesia giving it one of the largest networks of branches and ATMs among the foreign banks.
The RBS acquisition and the bank’s organic growth plans will see them invest up to US$100 million in capital in Indonesia this year and expand its presence to a total to 28 branches across 11 cities and with almost 1,000 full time employees, Mr Smith said.
Economic growth in Indonesia is expected to reach approximately 5.6 percent in 2010.
Mr Smith added that the bank is optimistic about the economy’s prospects which are supported by the government’s commitment to infrastructure development and to continued economic reform.
There is no question that Indonesia stands out as a key part of the Asian growth story. ANZ expects urbanisation will see more than 50 million people move to cities in Indonesia over the next 20 years, second only in size to China’s urbanisation, Mr Smith highlighted.
Australia and Indonesia are increasingly close economic partners. The trade flow between the two countries totalled US$8.7 billion in 2008, up almost 10 percent on 2007.
Mr Smith noted that Indonesia’s own strengths in natural resources and agriculture mean it’s also well placed to benefit from Asia’s continued growth, which ANZ expects will be around 7 percent in 2010, excluding Japan.
Given this, Indonesia will be one of ANZ’s most important markets as part of its objective to become a super regional bank, Mr Smith added.
ANZ’s operations in Indonesia date back almost 40 years and the bank is also a major investor in Indonesia including its interest of approximately 39 percent in PT Panin Bank.
ANZ has said it is on track to complete the acquisition of the RBS retail and commercial businesses in Indonesia in June 2010, subject to regulatory approval; adding that this is a unique opportunity for ANZ to expand and strengthen its presence in Indonesia giving it one of the largest networks of branches and ATMs among the foreign banks.
The RBS acquisition and the bank’s organic growth plans will see them invest up to US$100 million in capital in Indonesia this year and expand its presence to a total to 28 branches across 11 cities and with almost 1,000 full time employees, Mr Smith said.
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