Indonesia, Malaysia widen their banks' access to each other's market

[JAKARTA] Indonesia's financial regulator and Malaysia's central bank have signed an agreement that will increase the access of banks to each other's market.

Muliaman Hadad, chairman of Indonesia Financial Services Authority (OJK), and Muhammad Ibrahim, governor of Bank Negara Malaysia, signed the pact at the state palace in Jakarta, the OJK said in a statement late on Monday.

"The agreement is aimed at reducing an imbalance in the market access and banking activities of both countries through the presence of banks that fulfill certain conditions in each jurisdiction, based on the principle of reciprocity," the statement said.

Malaysian lenders CIMB and Maybank already have businesses in Indonesia, while Indonesian state-controlled lender PT Bank Mandiri Tbk has said it plans to expand in the region including in Malaysia.

REUTERS