Indonesia welcomes foreign banks following MUFG's Danamon deal

Singapore

BANKS from countries including China are looking to follow the example of Japan's largest lender and buy stakes in Indonesian financial institutions, according to the head of the South-east Asian nation's Financial Services Authority.

After the agreement last month by Mitsubishi UFJ Financial Group (MUFG) to purchase a US$1.2 billion stake in PT Bank Danamon Indonesia, the government in Jakarta wants to see similar investments as it seeks to boost lending and fund ambitious infrastructure projects, according to Wimboh Santoso, who was appointed in June as chairman of the regulator, known locally as OJK.