UTRECHT, 14/07/06 - Rabobank is acquiring two Indonesian banks that focus primarily on small and medium-sized businesses. They are Bank Haga and Bank Hagakita, both in the hands of the same owners.

The two banks have 1,537 employees and 78 branches, distributed among the islands of Java, Bali and Sumatra. Haga and Hagakita have assets under management of over 300 million euros, a trifle compared with the 506 billion euros of assets managed by Rabobank. The Dutch cooperative bank did not disclose how much it is paying for the acquisitions yesterday.

According to board member Hans ten Cate, the takeovers fit in with plans for growth in Asia. "Agriculture and horticulture, at around 23 billion dollars, accounts for 15 percent of the Indonesian economy. This is interesting for us. We are always looking for expansion in countries where these sectors are extensively represented."

Ten Cate does think things will become somewhat quieter on the takeover front. "In the coming period, we will not announce any takeovers," according to the top executive. Earlier this week, Rabobank announced it has bought a stake in a Chinese bank.

Rabobank has already been represented in Indonesia since 1990. But hitherto, the bank had a modest position in the country, with 85 employees.