Singapore-headquartered DBS says it hopes its application to buy an initial 40 per cent stake in PT Bank Danamon Indonesia – leading to a possibly larger holding – will be approved by Bank Indonesia, as reported by recent media coverage.

“DBS notes recent news reports quoting Bank Indonesia governor, Darmin Nasution, as saying that Bank Indonesia has approved the purchase by DBS of an initial 40 per cent stake in PT Bank Danamon Indonesia Tbk (Danamon); with the possibility of approving the purchase of a further stake, should reciprocity conditions between Indonesia and Singapore be agreed upon,” DBS said in a statement.

“As of today [21 May], official written notification of the above approval has not been received from Bank Indonesia. DBS hopes the application will be approved as originally submitted and will continue to be closely guided by Bank Indonesia,” it added.

Bank Danamon is Indonesia’s sixth largest bank and has a branch network of over 3,300 branches and points of sale. This network offers DBS the potential to cultivate substantial new business.

Led by Tan Su Shan, (shortlisted for the WealthBriefingAsia 2013 awards, Outstanding Contribution to Asian Wealth Management category), the sophisticated Consumer Banking/Wealth Management offering from DBS would augment the garnering of new assets in its neighbours market.

DBS originally intended to procure 67.4 per cent of Bank Danamon from the Singapore sovereign wealth fund, Temasek Holdings, (Temasek also owns 29 per cent of DBS), before acquiring the remaining stock from minority shareholders.

DBS has shown an appetite for acquisitions to gain sustainable footholds in other markets. In 2001 the bank acquired the business of Dao Heng Bank giving them access to Hong Kong. The Bank Danamon deal is in line with DBS's goal of becoming a leading Asian bank with a more diversified mix of revenues from key markets. The Singapore based bank has said on several occasions it is targeting growth throughout Greater China, South Asia and Southeast Asia.