Update COVID-19 in Indonesia: 64,958 confirmed infections, 3,241 deaths (6 July 2020)
6 July 2020 (closed)
USD/IDR (14,446) -14.00 -0.10%
EUR/IDR (16,385) +81.74 +0.50%
Jakarta Composite Index (4,988.87) +15.07 +0.30%
The Rabobank Group, a Dutch multinational banking and financial services company with its headquarters in Utrecht, has injected USD $35 million worth of capital into its Indonesian subsidiary Rabobank Indonesia. Martyn Schouten, President Director at Rabobank Indonesia, said that the capital injection is carried out to support Rabobank Indonesia’s business expansion in Southeast Asia’s largest economy. He added that the Indonesian unit will play an increasingly important role in international business of the Rabobank Group.
Although amid the country’s economic slowdown Indonesia’s banking sector growth has slowed accordingly, there remains ample potential for future growth as banking penetration in Indonesia stood at approximately 30 percent only in 2014. The USD $35 million capital injection into its local Indonesian unit shows that the Rabobank Group sees this potential and is eager to expand its business in Indonesia through corporate and business banking.
Rabobank Indonesia emphasized that in 2015 it will focus on the Indonesian food and agribusiness sectors, which have shown robust growth in recent years, as its strategy to grow rapidly in Indonesia. In line with this approach Rabobank Indonesia has realigned several of its local branch offices. Rabobank has branch offices in various regions in Indonesia including Java, Sumatra, Kalimantan and Sulawesi.
As an example of Rabobank Indonesia’s focus on the agribusiness sector, Schouten pointed at the coffee industry. Rabobank Indonesia will disburse loans to companies that originate from the whole coffee supply chain. For example those companies that provide agricultural input such as coffee seeds, fertilizers and pesticides, but also transportation companies, or coffee bean processing companies, packaging firms, distributors and supermarkets that sell coffee that is ready for consumption.