Bank Indonesia WelcomesmJapanese Acquisition of Mutiara Bank

Jakarta (Antara) - Bank Indonesia has welcomed the acquisition of 99.996 per cent of Mutiara Bank's shares by J Trust Co of Japan. "What is important is that the process is right and good. That's important since it is time for the bank to be sold at the best price available," BI governor Agus Martowardojo said after a meeting with the House Commission XI here on Monday. He said he had predicted earlier that a foreign investor would buy the Mutiara Bank and it was allowed under the law. "So, I am convinced that the Deposit Insurance Corporation (LPS) has done the calculations and later the Financial Service Authority (OJK) as a banking regulator would certainly also respond to it," he said. LPS announced on Sunday that J Trust Co. of Japan had been declared as the winning bidder and had signed a conditional agreement for sale and purchase of shares agreement with the company that managed the transaction but J Trust did not mention how much money it had spent to buy the bank. This is the second time J Trust Co. has bought an Indonesian bank. Earlier, in December 2013, it had bought 10 per cent shares of PT Bank Mayapada Internasional Tbk. J Trust Co.'s reason to buy the Mutiara Bank was among others based on its prediction that the banking sector in Indonesia would grow fast and become the biggest in Southeast Asia. The Japanese company wished to contribute to Indonesia's economic growth and meet the fast growing demand for retail finance in the regions as per capita incomes of the Indonesian people increase. To follow up on the share purchase, J Trust Co. would undergo a process of drawing agreements for the company to become the principal shareholder through a fit and proper test which would be carried out by the Financial Service Authority (OJK). (*) Reporting by Citro Atmoko