NH Financial Group to Expand into Indonesia

NH Financial Group signed a memorandum of understanding (MOU) with Indonesia’s largest bank Bank Mandiri at Mandiri’s main office in Jakarta, Indonesia, on March 1 to cooperate in developing rural areas in the Southeast Asian country.

Mandiri is the largest lender in Indonesia by assets, capital, loan and deposit balance, and the state-run bank with a 60 percent stake. It also has 2,300 branches and 15,000 automated teller machines nationwide.

Under the agreement, the two groups will share their financial knowhow and business networks in agriculture, cooperating in a wide range of financial services from banking and insurance to leasing and micro financing in order to develop rural areas in Indonesia.

In order to do so, NH will offer the group’s knowhow and skills in agricultural finances, such as loans, credit guarantees and insurance for farmers, to Bank Mandiri, boosting financial services in Indonesian agriculture.

Moreover, Bank Mandiri is aware of the fact that the expansion of NH Financial Group into Indonesia will help developing Indonesian agriculture and has decided to actively cooperate in various sectors.