DBS Group Holdings Ltd. got approval from Indonesia’s central bank to acquire a $2.75 billion stake in PT Bank Danamon Indonesia, giving Southeast Asia’s largest lender less control than it had sought.
Indonesia posted the smallest current-account deficit in a year last quarter, and the Southeast Asian nation’s central bank said capital inflows will help to further narrow the gap and support the rupiah.
DBS Group Holdings Ltd., Southeast Asia’s largest bank, unexpectedly posted an 11th straight increase in quarterly profit as fees, commissions and trading income rose, helping offset narrower lending margins.
Indonesia will probably face more pressure than other Asian nations to raise borrowing costs this year after keeping its benchmark interest rate unchanged tomorrow, as plans to cut fuel subsidies boost inflation risks.
Indonesia’s central bank chief said he wants to avoid increasing interest rates, counting on lending and reserve rules for banks to contain inflation and stoke growth in Southeast Asia’s biggest economy.
Indonesia held its benchmark interest rate for a 14th consecutive meeting as plans to cut fuel subsidies boost inflation risks, reducing scope for monetary easing even as falling exports crimp economic growth.
Indonesian lawmakers will assess today Finance Minister Agus Martowardojo’s suitability to become the next Bank Indonesia governor, testing support for the president’s bid to reshuffle his top economic team.