(25 June 2007 – Indonesia) Commonwealth Bank has increased its stake in Indonesia’s PT Astra CMG Life to 80 percent.CBA’s partner PT Gala Arta Jaya has taken on the remaining 20 percent holding in PT Astra CMG Life.
The Indonesian bank said the previous 50/50 joint venture ownership model had reached “maturity” and it was in the best interests of the business that Astra International or CBA acquire the majority shareholding.
“Following extensive discussion and consideration, Astra International and CBA came to the decision that it would be in the best interests of Astra CMG Life that CBA acquire the majority shareholding”.
CBA head of International Financial Services division and a commissioner of Astra CMG Life,Garry Mackrell, said the Australian bank was pleased to be contributing to Indonesia’s strengthening financial services industry.
“CBA has been operating in Indonesia for 10 years and we continue to see strong demand for integrated financial services in Indonesia’s rapidly growing middle income customer population.
“Our goal is to provide Indonesians with a comprehensive range of financial and insurance products and services, supported by our expanding network of operations and branches,” Mackrell said.