Indonesia’s right partner for progress

06-Dec-2019 Intellasia | JakartaPost | 6:02 AM Print This Post

Creating world-class human capital is one of President Joko “Jokowi” Widodo’s focuses while heading toward an industrialised economy over the next five years.

The President is confident that Indonesia would be able to realise its vision of becoming a developed country by improving its human resource capacity, a key to increasing national economic competitiveness to support domestic productivity and attracting foreign investment.

As Indonesia is on the way to transforming itself into an industrialised economy, foreign direct investment (FDI) is important for spurring growth. FDI not only brings in capital but often also introduces the country to new technologies, advanced skills, modern managerial approaches and global marketing networks.

To achieve its goal of becoming a developed country, Indonesia can’t work alone. Multiple partners with the right strengths are required to fulfill the aspiration.

Among such partners are foreign banks in Indonesia that have the strengths and expertise that can’t be overlooked as they are strategically positioned to contribute to Indonesia’s economic development.

Standard Chartered (the Bank), which has been in Indonesia for more than 155 years, is one of them. With a strong history deeply intertwined with the nation’s development, the Bank possesses in-depth knowledge to support economic development and to set a foundation for future growth.

“Standard Chartered is present in 60 of the world’s most dynamic markets and serves clients in more than 85 countries. The Bank is also the only international bank operating in all 10 Asean markets. Our strong network is an unparalleled strength to support the government in promoting Indonesia as an investment destination,” says Andrew Chia, Standard Chartered Bank Indonesia’s newly appointed CEO.

The Bank brings a wide scope of contributions to the nation beyond providing conventional banking services. With its diversity, the Bank aims to drive commerce and prosperty in the markets where it operates. Investment, human resources development, entrepreneurship, fighting financial crimes and sustainability are among the concerns that Standard Chartered has been focused on.

When it comes to FDI, the Bank not only acts as one of the Investment Coordinating Agency’s (BKPM) main partners, but Standard Chartered was also the only foreign bank involved in all global bond issuances carried out by state-owned enterprises (SOEs) in 2018 and has continued to participate in 2019. Moreover, the Bank also leveraged its networks, market expertise and strong relationship with clients to support the Indonesian government in yielding commitments of more than $5 billion (Rp 71 trillion) of foreign investments into Indonesia.

Spirit of partnership

Standard Chartered’s long presence in and contributions to Indonesia have gained it an in-depth understanding about the market and how it can further support the country’s development. In August 2019, the Bank signed a memorandum of understanding (MoU) with the Indonesia Eximbank on a partnership for capacity building and transfer of knowledge in the fields of Export Credit Agency (ECA) financing, antimony laundering and financial crime compliance and risk management.

Meanwhile, in September 2019 Standard Chartered held a Correspondent Banking Academy (CBA) in Jakarta, a workshop attended by more than 100 participants from 30 local banks, focusing on fighting financial crime and managing the risks involved in the correspondent banking business. Workshops like these are crucial to help prepare the banking industry for the Financial Action Task Force (FATF) Assessment in Q12020. FATF is an inter-governmental body aiming to set standards and promote effective implementation for combating financial crimes.

These partnerships are a clear testament of the Bank’s support for building a strong and healthy banking industry.

A healthy economy and banking industry are indeed mediums to propel growth and innovation to ensure that services rendered by financial industry players are in resonance with the everevolving consumer landscape. With the same partnership spirit, in 2019 Standard Chartered collaborated with its partners to deliver breakthrough products to support the development of the Indonesian capital market. Together with Mandiri Manajemen Investasi, the Bank launched the first mutual fund with the T+0 feature, allowing redemption on the same day, as opposed to the industry standard of a three-day redemption. The Bank also launched Indonesia’s first multi-share class mutual fund in partnership with Manulife Aset Manajemen Indonesia, paving the way to more sophisticated financial products being offered in Indonesia.

A progressive future

Innovation doesn’t only manifest in products and business. To secure sustainable business growth, players in the financial industry must continuously evolve and innovate their ways of doing business.

With that in mind, and a strong sense of responsibility to support a sustainable future, Standard Chartered has undertaken bold moves for tightening the criteria on the types of financing it will support. The Bank has announced that it won’t finance new coal-fired power plants, nor will it support new plantations that convert or degrade high carbon stock forest, peatlands, or designated legally protected areas.

Building a sustainable future also involves preparing a smart and savvy next generation. Standard Chartered, through its flagship Futuremakers programme, aims to raise $50 million between 2019 and 2023 to empower the next generation to learn, earn and grow through activities focused on education, employability and entrepreneurship.

The closure to 2019 is around the corner and Indonesia will enter the decade of the 2020s. With long its long presence in Indonesia and tangible contributions to the country’s economy and people, Standard Chartered will continue to actively partner, innovate and participate in realising Indonesia’s vision to become a developed country that boasts strong economic potentials and is committed to a sustainable future.

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Category: Indonesia

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