Bank Mandiri, which has an offshore bank licence, plans to upgrade its status to run a private banking unit in the Lion City.
In a recent interview the chief executive of Indonesia's largest bank, Kartika Wirjoatmodjo, told Singapore publication «The Straits Times» his institution was looking at obtaining a limited retail banking licence in order to offer high net worth Indonesian clients a wealth management service.
The CEO said he also wants to make Singapore a hub for Mandiri's corporate clients, most of whom have offshore financing, either bilateral bank loans or fund raising via capital markets, to access global investors.
Tax Amnesty
Wealthy Indonesians are believed to bank a large portion of their assets abroad and the local tax authorities believe some do so to avoid scrutiny and paying tax.
Recent reforms in Indonesia, including a high profile tax amnesty, have made ultra-rich citizens less opposed to banking with state-owned institutions, the chief executive said.
No Longer Worried
«In the past, they were worried that their undeclared wealth will be reported,» Wirjoatmodjo said in the report. «After the tax amnesty, everything is transparent so Indonesians who put money in Singapore are no longer worried about having us, a state-owned bank, as their banker,» he added.
The ambitious Indonesian lender is also expanding its retail banking business in Malaysia and the Philippines.
