OCBC private services reach Indonesia
OCBC has launched onshore private banking services in Indonesia, building up its wealth management footprint in the growth market.
OCBC NISP - its 85 per cent owned Indonesia subsidiary - has received regulatory approval to establish a private banking unit there.
The new unit will serve Indonesians with investible assets of more than US$1 million (S$1.4 million), adding to OCBC's total private banking assets under management of around US$85 billion.
Having an onshore presence allows a financial institution to directly access domestic funds.
This will be the key to unlock Indonesia's high-net worth segment given that the country recently completed its tax amnesty programme.
The programme was launched by the Indonesian government last July to prompt the repatriation of offshore assets.
About US$330 billion worth of assets were said to have been declared by Indonesian taxpayers as a result.
OCBC group chief executive Samuel Tsien also expects the private banking unit to complement OCBC NISP's business and SME banking foothold.
"It is a strong SME banking player and its large corporates segment has likewise been growing steadily," Mr Tsien said.