Granting of the transfer of the restricted banking licence of P.T. Bank Pembangunan Indonesia (Persero) to P.T. Bank Mandiri (Persero) (Mandiri)

A spokesman of the Hong Kong Monetary Authority (HKMA) said today (2 August 1999) that the HKMA had granted the transfer of the restricted banking licence of P.T. Bank Pembangunan Indonesia (Persero) (Bapindo) to Mandiri under the Banking Ordinance. This grant of transfer took effect on 31 July 1999, the date on which the merger of P.T. Bank Bumi Daya (Persero), P.T. Bank Dagang Negara (Persero), Bapindo and P.T. Bank Ekspor Impor Indonesia (Persero) (collectively the Legacy Banks) into Mandiri became effective in Indonesia. On the same date, the Legacy Banks were dissolved.

The transfer of the restricted banking licence of Bapindo to Mandiri enables Mandiri to continue to carry on the business activities of the Legacy Banks in Hong Kong. Previously, the businesses of the Legacy Banks were conducted through the Hong Kong Branch of Bapindo and two deposit-taking companies, namely, Staco International Finance Ltd. and Bumi Daya International Ltd.

Mandiri was established, and is wholly owned, by the State of the Republic of Indonesia. It is under the direct supervision of Bank Indonesia, the banking supervisory body in Indonesia. As a restricted licence bank, the Hong Kong Branch of Mandiri (Mandiri-HK) will focus on trade financing and corporate lending, which were the Legacy Banks' core business activities in Hong Kong. After the completion of the transfer of their operations to Mandiri-HK, the two deposit-taking companies will apply to the HKMA for the revocation of their authorizations.

Since this involves only the transfer of a restricted banking licence, the total number of restricted licence banks in Hong Kong remains unchanged, currently at 59.

Hong Kong Monetary Authority
2 August 1999