Bank Rakyat to enter Indonesia mart in Q2 this year

Bank Rakyat will enter the Indonesian market in the second quarter (Q2) of this year after getting approval from the authorities, including Bank Negara Malaysia.

To this end, the bank said, it had signed a memorandum of understanding with Indonesia’s largest bank, Bank Rakyat Indonesia (BRI), today.

In a statement, the bank said, the collaboration would enable both banks to provide money order services to over 700,000 Indonesians in Malaysia.

Its Chief Retail Banking Officer, Mohd Shahril Isa, said Malaysia has the highest number of money order transactions worth US$1.9 bilion (US$1 = RM4.44) to Indonesia in 2016.

“This is one of the main factors for Bank Rakyat to expand its banking services to the country,” he said.

BRI was set up in 1895 and has 50 million retail clients, with over 10,612 business and services branches all over Indonesia, while Bank Rakyat is the largest Islamic cooperative bank in Malaysia with 147 branches.