Bank Rakyat Indonesia to acquire Bank Agro

Takeover crucial to BRI as it beefs up its assets to become competitive in international market.

An independent commissioner of PT Bank Rakyat Indonesia Tbk. (BRI), Aviliani, said she agreed the bank should take over Bank Agroniaga Tbk.

"BRI is keen to acquire Bank Agro to strengthen its assets and widen its market," she said to ANTARA.

She said the acquisition was important because competition against foreign banks would be tighter in 2011 and therefore state-owned banks had to strengthen their assets.

She said the plan would be one of the agenda of the general meeting of shareholders next May.

"Only after decision on it was made through the meeting would the next plan be discussed. It is normal for a state-owned bank to acquire another state-owned bank," she said.

As an independent commissioner she said she could not speak about the bank's next plan yet.

View the full story in ANTARA.