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The central bank has closed Bank UFJ Indonesia at the request
of its own shareholder, the Bank of Tokyo-Mitsubishi UFJ (BTMU).
As of Oct. 5, the lender has been effectively required to terminate all
banking and other operations at all of its branch offices, Bank
Indonesia said in a statement released Friday.
The central bank has also asked the bank's management to immediately
hold a shareholders meeting to arrange for its liquidation, and to
require its shareholder to take responsibility for all outstanding
liabilities to its customers.
The lender has thousands of customers, mostly involved in Japan-related
businesses, and some 200 employees.
UFJ Indonesia was first established as Sanwa Indonesia Bank in July
1989, before adopting its current name in October 2001.
In collaboration with Bank Rakyat Indonesia (BRI) -- Indonesia's fourth
largest lender in terms of assets -- the bank has been jointly
operating a consumer finance firm, PT UFJ-BRI Finance. It has a 55
percent stake in the company, while BRI holds the remaining shares.
The Tokyo-based BTMU decided to liquidate UFJ Indonesia and consolidate
its operations with its own local branch offices here following a
merger in January this year between the Bank of Tokyo-Mitsubishi and
UFJ Bank.
BTMU has since become the core business of the newly consolidated
Mitsubishi-UFJ Financial Group, the world's largest banking group with
at 190 trillion (US$1.7 trillion) in assets.
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