Bank Mandiri to offer renminbi financing

Bank Mandiri expects to provide renminbi financing services to Mainland clients within three years.

Indonesia’s largest bank in term of assets, loans and deposits intends to offer the service at its Shanghai branch in an effort to increase its customer base.

President Zulkifli Zaini said if the new branch, which opened last November, could provide renminbi financing services, it would better be able to take advantage of growing local currency financing.

Bank Mandiri is the only Indonesian bank that has a full branch office in China. The Shanghai branch augments the bank’s existing overseas network, which consists of offices in Hong Kong, Singapore the UK and other locations.

It focuses on international banking, including trade services, trade financing, project financing and treasury transactions for existing Bank Mandiri customers, especially those that do business in China and other Asian countries.

“The new branch can provide banking services in renminbi, if it is able to post profits in two consecutive years within three years of operation,” Zulkifli said.

Zulkifli said of the Shanghai branch will allow Bank Mandiri to further support the expansion of Indonesian companies in China and will also back the Indonesian government’s export promotion program by providing banking services in trade and other businesses.

“Through our Shanghai branch, we will develop new business opportunities with Chinese companies and companies from other Asian countries that wish to trade or invest in Indonesia, or vice versa.”

Zulkifli said there is a possibility for Bank Mandiri to open another branch in China if the Shanghai branch becomes successful.