Jakarta, March 6, 2017 — The Financial Services Authority (OJK) issued a decision to revoke the business license of The Royal Bank of Scotland N.V. (RBS N.V.) branch in Indonesia, which previously operated as a foreign bank branch office (KCBA).

The revocation decision was issued by the meeting of OJK's Board of Commissioners held on Thursday (Feb. 23) and it was promulgated by OJK's Board of Commissioners Decision No. 7/KDK.03/2017 dated Februari 28, 2017, on Revocation of Business License of The Royal Bank of Scotland N.V. Branch Office in Indonesia.

The revocation was issued based on a request submitted by RBS N.V. Head Office in the Netherlands to the OJK on November 1, 2016. The bank filed the application to close its branch following the British lender's business strategy that had decided to shut down its business network in 25 countries, including Indonesia.   

RBS N.V. had had a long presence in Indonesia. Its branch office first operated in the country in 1969 as ABN AMRO Bank N.V., Indonesia Branch. Since 2010, The Royal Bank of Scotland Plc. has become RBS N.V.'s controlling stakeholder. In 2011, ABN AMRO Bank N.V., Indonesia Branch changed its name into The Royal Bank of Scotland N.V.

Throughout its operation in Indonesia, the bank's branch office was considered as one that had complied with the prevailing regulations. Until the end of 2014, the branch had always posted operating profits, reflecting its bright business prospects in the country. 

However, unlike the Indonesia branch, globally RBS has been in the red in recent years. Thus, the bank decided to focus its business on the UK domestic market (Bloomberg, January 12, 2015). On February 26, 2015, RBS announced it would shut down its business in 25 countries, including the branch office in Indonesia, in its press release on Annual Result for the year ended 31 December 2014 published on www.rbs.com and www.londonstocksexchange.com.

The bank undertook the plan to close its Indonesia branch office in the second half of 2015, by first shutting down RBS N.V. sub-branch in Surabaya in December 2015. Next, the bank's branch office gradually cut back its business activities and submitted a request to prepare itself for the revocation of its banking license at the end of August 2016.

Before applying for business license revocation, the bank's branch in Indonesia had settled all of its obligations as a branch office. Thus, its license revocation by the OJK has complied with SK DIR No.32/53/KEP/DIR dated May 14, 1999, concerning Procedures for Business License Revocation, Dissolution and Liquidation of Commercial Banks.

For members of the public and other parties that still have pending claims and obligations to The Royal Bank of Scotland N.V., Indonesia Branch, please contact the Branch's Settlement Team latest by March 31, 2017, at the following address and phone numbers :

Any requests or inquiries after March 31, 2017, should only be directed to the Royal Bank of Scotland at the following address and phone number:

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For more information:

Irwan Lubis, Deputy Commissioner for Banking Supervision III

Tel: +62 21 2960 0000 E-mail: humas@ojk.go.id Website : www.ojk.go.id