HSBC Indonesia will complete its integration with Bank Ekonomi Raharja by April 2017 after discussions with the Financial Services Authority (OJK) intensified last year.

By integrating with Bank Ekonomi, HBSC would be able to expand its operations and offer services in 31 cities, from the current six, under Bank Ekonomi branches, as well as give Bank Ekonomi access to wealth management services, said HSBC Indonesia head of retail banking and wealth management Blake Hellam.

"It will be complete in April 2017. We are confident in our negotiations with the regulator. Behind the scenes, there is a lot to do, such as system, regulation and product [integration]," he told thejakartapost.com on Thursday.

HSBC, he continued, planned to change the name of Bank Ekonomi into HSBC ahead of the merger. However, the lender must wait for approval from the OJK.

HSBC Indonesia spokeswoman Daisy K. Primayanti added that the integration had actually been discussed with the OJK since 2009, but the integration process only started after the discussions intensified in the past year.

"It looks like a bit late compared to other foreign banks, but the integration discussions with the OJK actually started in 2009," she said.

British-based HSBC took over Bank Ekonomi in 2009, and holds a 98.9 percent share of the Indonesian bank.

As a foreign bank, HSBC Indonesia has certain limitations on its expansion. Bank Ekonomi currently has 91 branches in Indonesia, while HSBC Indonesia has only 41.

Such limitations motivated UOB and OCBC to integrate their foreign branches with local banks. OCBC Indonesia merged with PT OCBC NISP while UOB Indonesia with PT Bank UOB Buana. (ags)(+)

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