Indonesia's central bank (Bank Indonesia) has approved Singapore's DBS Group to buy a maximum stake of 40 percent in Indonesia's Bank Danamon Indonesia, the sixth largest bank of Indonesia in terms of asset size. Last year, the DBS Group wanted to purchase a 67.73 percent stake, owned by Asia Financial Indonesia, in the bank but the purchase was delayed as Indonesian regulators wanted to limit foreign ownership in the country's financial sector due to fears of foreign domination.
Governor of Bank Indonesia, Darmin Nasution, who is serving his last days as governor, stated that if the DBS Group wants a higher stake than 40 percent in Bank Danamon, it will be allowed provided that Singapore opens up its financial sector to three state-owned banks (Bank Mandiri, Bank Negara Indonesia and Bank Rakyat Indonesia) first. These three banks have been wanting to expand to Singapore for years but have never been able to get the necessary permits. Only Bank Negara Indonesia has one branch in Singapore. This branch was already established before Singapore's independence.