Malaysia's Bank Islam to expand in Indonesia

Bank Islam Malaysia has offered to acquire between 30 and 40 percent stake in an Indonesian Islamic bank.

It is currently is awaiting response from the said bank, according to Bank Islam managing director, Datuk Seri Zukri Samat.

Zukri said the proposed acquisition was part of its move to expand its overseas operations.

"Bank Islam has identified one bank and has indicated its offer to them, but so far, we have yet to receive any response to our proposal," he said.

On the possible Bank Indonesia's decision to allow only up to 40 per cent foreign institution ownership in Indonesian banks, he said, Bank Islam thought that anything above 30 percent should be consider as strategic stake.

"The most important criteria for us are via the acquisition and partnering with any bank that we are keen on so that we can put added value to it," he said.

Zukri, who declined to name the bank, said Bank Islam hoped the deal could be finalised by year-end.

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