Bank Indonesia rejected a proposal from Barclays Plc persuading the central bank to grant it a permission to reestablish their company in the nation.
Head of Directorate of Strategic plan and Public Relation Bureau BI Difi A. Djohansyah confirmed to the information.
“I’m not sure about the detail but it is true that Barclays proposal has been rejected as the bank once released Bank Barclays Indonesia.”
BI had required Barclays to liquidate its subsidiary, PT Bank Barclays Indonesia. The move was in accordance with its earlier commitment while purchasing shares of the entity used to be named Bank Akita.
The second biggest bank in England only had the permission to sell the business unit to other party and accomplish its liabilities to third parties, including Bank Barclays Indonesia's employees after it was closed.
Barclays still operates in Indonesia but only to manage two core businesses: investment bank and securities. The investment withdrawal option was taken since Barclays re-organized the business entity by dividing it into three divisions: Global Retail Banking, Corporate and Investment Banking and Wealth Management and Absa.
As part of the restructuring, Barclays Corporate realign some of its businesses, in order to focus its resources on those activities which will be prioritized going forward. This realignment will result in a non-recurring charge of approximately 100 million pounds.
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