Rabobank Indonesia is planning to phase out its operations in Indonesia. The bank’s shareholders have taken this decision, mainly in view of the fierce competition in the country’s banking industry, which particularly hurts the smaller banks. Jos Luhukay, president director of the bank, said it was a very hard decision to take, especially because the bank has been operating in Indonesia for nearly 3 decades. However, the decision is part of the global strategy of the Rabobank Group, he added. The bank will gradually stop its operations. In the first phase it will close its branches. In the second phase it will wind down the services and products it offers to clients. In the final phase it will request Indonesia’s Financial Services Authority (OJK) to revoke all permits. The bank has 34 branches in Java, Sumatra, Kalimantan and Sulawesi. It is part of the Netherlands banking group Rabobank.
