JAKARTA. Local financial industry began actively expand abroad. The implementation of the Asean Economic Community (AEC) 2015 encourages domestic financial industry to aggressively expand into the neighboring country.

Yesterday, a subsidiary of Bank Mandiri, Mandiri Securities and Mandiri Investment Management officially opened a branch office in Singapore. Evan Lim, CEO of Mandiri Investment Management Pte Ltd (MIM) said, MIM will manage the funds of international investors and issuing investment products.

This year, MIM targets funds under management of US$ 100 million. According to Evan, Indonesian clients actually control 80% of private business of Singapore banks. "They already know the Indonesian market and MIM will help customers who need to invest in Indonesia," Evan said in Singapore, yesterday (25/3).

Wendy Isnandar, Director of MIM, added, in the real sector, the MIM will work on collective investment products such as limited investment mutual funds (RDPT). RDPT will be invested in several projects, such as infrastructure, shipping, and renewable energy projects. Mandiri Securities is in talks with RHB Investment Bank Berhad (KONTAN, March 18, 2014) regarding the issuance of Malaysian Ringgit-denominated bonds.

In the insurance industry, Asuransi Central Asia (ACA) has spread its wings in Thailand, Hong Kong, Taiwan, Philippines, China, Vietnam, and Cambodia. In the near future, "We will add a new subsidiary to neighboring countries, we are still waiting permission from there," said Teddy Hailamsah, President of ACA to KONTAN, Tuesday (25/3).

ACA expands into neighboring countries through joint ventures and co-operation scheme. In Cambodia, ACA has a 20 % stake in Asian Insurance International which has few subsidiaries: Asian Insurance and Bangkok Insurance. As in the Philippines, ACA has a stake in Asian Insurance Corporation. Jasindo Insurance also intends to expand into neighboring countries. "The plan is not final yet," said Sahata L. Tobing, Director of Retail Insurance Jasindo.

Financial Services Authority (FSA) supports the expansion of the local insurance industry in order to target the ASEAN market. "We need to get prepare for AEC. Not just to survive, but how do we attack other markets," said Firdaus Djaelani, Chief Executive of Non-Bank Financial Supervisory Industrial (FSA).

Editor: Amal Ihsan