'We want to be the bank of reference in
providing full financial solutions to the F&A
business chain and SME sector in Indonesia.'
Indonesia in figures
Smooth operation
Tony Costa
as Rabobank institutions'. However, there are
cultural differences between Indonesia and the
Netherlands, and also between the two banks and
Rl Indonesia. Effective management ofexpecta-
tions is key to a smooth integration process.
But how to ensure seamless integration? There is no
set formula. In this case, Rabobank has implemented
the "Growing4Growth" project, aimed at integrating
the three banks in Indonesia. One of the project's
tasks has been to put together an integration team
of members from Rl Indonesia, Rl Singapore and
the two acquired banks. The team is responsible
for the overall integration strategy and plan, as well
as the banks' performance. They also coordinate
various 'Task Forces", comprising HR, Operations
IT, Risk Management, Finance, Compliance, Business
Development, Legal and Communications.
Ireland. It's expected that the banks will be fully integrated legally by the start
of 2008, but the cultural integration could take longer. That means the team
has a year to fïnalise the merger process, execute the project and bring the
acquired banks up to our international standards.'
Costa sums up the integration process and how he sees future develop-
ments in Indonesian banking: 'It's early in an ongoing integration project,
but we're confident of success. Once the three banks are fully integrated,
we'll consider how we might want to grow our Indonesian portfolio in the
future. If Rabobank demonstrates that the acquisition and integration of
Hagabank and Bank Hagakita can be a success, there is plenty of scope for
more opportunities.'
Four months along and the various teams are
already in action, tackling issues and moving the
project forward. Costa comments: 'There's still a
lot of work, and lessons still to learn. Evaluation
is key, so the team meets every week to monitor
progress. Part of the process has been to learn from
other acquisition projects in California, Poland and
10
The Word
The Indonesia economy is the largest in South-East Asia,
worth around US$ 260 billion
The economy is growing at around 5-6% per year
F&A contributes to 15% of GDP
The F&A trade amounts to over US$ 23 billion - this makes up
25% of South-East Asia's F&A trade flow (based on 2004 data)
Indonesia is made up of 13,000 islands
There are 130 banks currently operating in Indonesia;
The Central Bank of Indonesia wants that number to be
reduced to approx 50 in the next four years
