Bank Mandiri keen to expand ties with ICBC

The Indonesian bank to exploit growing business potential between Indonesia and China.

Indonesia's largest lender by assets, PT Bank Mandiri (BMRI.JK), said Tuesday it is considering extending its cooperation with Industrial & Commercial Bank of China Ltd. (IDCBY), as part of its drive to gain exposure to Asia's biggest economy.

The announcement comes after Bank Mandiri obtained a permit earlier this month from the China Banking Regulatory Commission to open a fully-fledged branch in Shanghai, which will provide the bank direct access to China's businesses.

"ICBC is committed to provide [cooperation] on renminbi settlement," Mandiri said in a statement, adding that it plans to open its branch in Shanghai in the first-half of next year.

Bank Mandiri has been present in China since 2007, but with limited operations and has been unable to raise third-party funds in China.

"In line with the growing business potential between Indonesia and China, Bank Mandiri will seek ways to continue expanding cooperation with ICBC," Mandiri said.

China is one of Indonesia's major trading partners, with trade, excluding oil and gas, totalling $23.5 billion in the first nine months of the year, a 52% jump from a year earlier, while China's foreign direct investment in Indonesia has surged in recent years.

View the full story in The Wall Street Journal.