JAKARTA (TheInsiderStories) – PT Rabobank International Indonesia has terminated its operational in Indonesia starting April 2019, as written in the notification letter on Tuesday (04/30). The lender owned by Dutch’ Rabobank Group, has been operating since 1990 in Indonesia,
President Director of Rabobank Indonesia Jos Luhukay felt heavy heart in deciding the termination of Rabobank Indonesia’ operation.
This decision, he said, is a difficult decision, but it is part of the global strategy of the Group in relation to the vision of banking for food that focuses on international supply chains for the food and agriculture sectors.
“We are committed to carrying out the decisions of all shareholders as well as possible and ensuring the process of returning banking licenses and business licenses to the relevant authorities runs well, smoothly and in accordance with applicable regulations in Indonesia,” he said.
Furthermore, the termination of operational activities will be carried out in stages, explained by Luhukay. The first phase, the termination was carried out by closing the branch office of the company whose letter of request for permission had been submitted to the Financial Service Authority. Then, Rabobank will gradually reduce banking product and service services, that have been provided to customers.
“A more detailed notification will be submitted in a separate letter. In connection with the Safe Deposit Box service which will also be terminated, this letter serves as an initial notification three months before the termination of the service,” he revealed.
Rabobank Indonesia is a subsidiary of Rabobank Group based in Utrecht, the Netherlands. As a subsidiary of the Group, Rabobank Indonesia’ focus is on financing the food and agribusiness sector.
In 2008, Rabobank expanded its business by entering retail and small medium enterprises financing. At the end of 2010, the company’ network included 92 branch offices, sub-branches and cash offices in 30 cities in Indonesia.
In 2017, Rabobank Indonesia serves corporate banking and business banking customers (commercial and SME banking) through 34 branch offices and sub-branches in Java, Sumatra, Kalimantan and Sulawesi.
On the balance sheet, the lender’ assets decreased by 9 percent from Rp13.1 trillion (US$922.53 million) in 2016 to Rp11.9 trillion in 2017. The decline in assets was mainly due to a decrease in the amount of loans channeled along with a focus on internal process improvements and approaches. who are more careful in lending to reduce loan risk.