Rabobank buys two Indonesian banks

Netherlands-based Rabobank Group announced Thursday (July 13) that it signed an agreement to buy two Indonesian banks, Bank Haga and Bank Hagakita, from individual shareholders. However, it declined to say how much it would pay for the small banks.

Bank Haga and Bank Hagakita focus on serving small and medium-sized enterprises (SME) in the trading, manufacturing and business services sectors. The two banks have a combined total of 1,537 employees and a network of 78 branches, sub-branches and cash offices located in Java, Bali and southern Sumatra. As of the end of 2005, they had a total of Rp3.97 trillion in assets.

"Bank Haga and Bank Hagakita have an impressive track record of consistent growth since their founding 17 years ago. Their professional management teams and loyal employees have developed a strong relationship with their SME customer base as well as a sound bank," Hans ten Cate, member of the Executive Board responsible for the group's international activities and chairman of the Managing Board of Rabobank International, said in a statement.

RabobankÆs Indonesian subsidiary, PT Bank Rabobank International Indonesia (RII), has been in business for 16 years and focuses primarily on corporate clients. It says it plans to develop Bank Haga and Bank Hagakita further as professional financial services providers for the SME and retail sector in Indonesia. As a result, it will invest in a number of areas including the further development of trade financing, treasury services and also transactional banking.

Earlier this week, Rabobank announced that it acquired a 10% interest in United Rural Cooperative Bank of Hangzhou (URCB). It says the three deals underline the importance Rabobank gives to the Asian region.