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Mandiri eyes bigger business in renminbi
State-owned lender Bank Mandiri hopes to book an equivalent of US$300 million from its renminbi (yuan)-denominated export-import and remittance transactions between Indonesia and China in 2014
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tate-owned lender Bank Mandiri hopes to book anequivalent of US$300 million from its renminbi (yuan)-denominated export-importand remittance transactions between Indonesia and China in 2014.
The figure would equal 25 percent of the $1.2 billion in total export-import and remittance transactions ' both with mainland China and Hong Kong ' projected this year, according to Mandiri's commercial and business banking director, Sunarso.
'We hope to see at least one quarter of the current business portfolio shift to renminbi from US dollar-denominated accounts next year,' Sunarso said in Jakarta recently.
The shift would be supported by the bank's new renminbi facilities, which comprised letters of credit (L/C) and remittances, he added. It also expected to post ¥72 million (US$11.76 million) from its new renminbi demand deposits in 2014.
Based on data from the bank, China is its second-largest foreign business partner, after Singapore. Between January and August, export and import transactions using L/C to and from China totaled $784.43 million, accounting for 15.5 percent of total transactions.
Most of the exports were commodities, such as coal, rubber, wood, bauxite and pulp and paper. Meanwhile, the majority of imports were industry-related, such as iron, steel, metal and machinery.
