TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Bank of Scotland’s local arm ceases operations in Indonesia

  • Prima Wirayani

    The Jakarta Post

Jakarta   /   Mon, March 6, 2017   /  02:31 pm
Bank of Scotland’s local arm ceases operations in Indonesia People pass through the Financial Services Authority's (OJK) booth at an expo in Jakarta. (Kontan/Daniel Prabowo)

The local arm of the Royal Bank of Scotland NV (RBS NV) has officially ended its business in Indonesia.

The Financial Services Authority (OJK) issued a decree on Feb. 28 concerning the operation license revocation of RBS NV’s branch office in Indonesia.

The revocation was carried out based on a request submitted by the lender's headquarters in the Netherlands, dated Nov. 1.

"The application is made as a follow-up action to the UK-based RBS Group business strategy, which decided to close its business network in 25 countries across the globe, including Indonesia," a statement by the OJK read.

RBS NV started operations in Indonesia in 1969 under the name ABN AMRO BANK NV Indonesia. The majority of its shareholding was acquired by the Royal Bank of Scotland Plc. in 2010, causing the bank's name changed to be changed to RBS NV a year later.

The lender's Indonesian arm booked profit until 2014, which indicated the country had encouraging business potential.

However, the situation was different for the RBS Group’s businesses globally, which still suffered from losses. It thus decided to focus on its businesses in the UK's domestic market, Bloomberg reported as quoted by the OJK.

RBS NV Indonesia had fulfilled all of its obligations before submitting the operation license revocation, the OJK said.

Members of the public who still have rights and obligations with the local arm can contact the disclosure team at the Indonesia Stock Exchange (IDX) building in South Jakarta until March 31. (bbn)

Your premium period will expire in 0 day(s)

close x
Subscribe to get unlimited access Get 50% off now