Indonesia’s Bank Jabar to acquire 51 small banks

Bank Jabar plans to buy a majority stake in 51 rural banks this year to tap the potential of small and micro businesses.

Already Indonesia's biggest provincial lender, it is aiming to become a one-stop financial services bank and wants to expand into sharia banking, multifinance and insurance, according to Bank Jabar CEO Bien Subiantoro.

“The strategy is to become a majority (owner) in all 51 rural banks,” said Subiantoro, adding that Bank Jabar already holds a minority stake in several rural banks it wants to buy.

“We're waiting for the central bank's approval as most of the rural banks are not in a financially good condition but we wanted to use the bank's network to expand our micro loan business.”

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