Rabobank has decided to close all its operations in Indonesia by the end of June next year. (JG Photo/Dion Bisara)
Rabobank to Shut Its Indonesian Operations by Mid-2020
BY :CHRISTIAN LEE
MAY 06, 2019
Jakarta. After a presence of nearly three decades in Indonesia, Dutch banking giant Rabobank Group has decided to close all its operations in the country by the end of June 2020.
Notifications of the closure will be available at all the bank's branches in the country, Rabobank International Indonesia president director Jos Luhukay said in a statement on Monday.
According to Luhukay, the Rabobank Group's decision is in line with furthering its global food security initiative, "Banking for Food."
The company's business structure outside the Netherlands will thus prioritize wholesale banking instead of retail. This has resulted in the closure of Rabobank branches in Poland, Ireland and North America.
He added that the closure was purely a strategic decision and not related to the Indonesian economy or its banking industry.
Rabobank International Indonesia is actively working with regulators and will comply with regulations to execute its plan.
"We have begun to take the necessary steps, and will continue to do so based on direction and supervision from the authorities," Luhukay said.
The closure will depend on approval by the relevant authorities and carried out by paying close attention to the interests of Rabobank customers and employees.
In the meantime, Rabobank has prepared the necessary funds to meet its obligations to depositors, third parties and employees.
Debtors will be assisted in transferring loans to Rabobank's partner banks, while employees have also been notified of their separation dates.
Rabobank Group said it remained committed to developing the food and agricultural sector in Indonesia by continuing its collaboration with wholesale clients. Its current plans include growing the Rabobank Foundation, Rabo Development and continuing to explore the food and agricultural sector through the AGRI3 Fund, an initiative by Rabobank and the United Nations Environment Program.