In a win for Victoria, Bank Negara Indonesia (BNI) has chosen Melbourne as the home for its Australian headquarters, joining the growing list of international companies establishing head offices in Victoria.

Meeting with representatives from Indonesia’s financial regulator Otoritas Jasa Keuangan (OJK) and BNI, Treasurer Tim Pallas welcomed the announcement as a significant milestone in Victoria’s relationship with Indonesia that would benefit both economies.

BNI has confirmed that once approvals from Australian and Indonesian regulators are obtained, the Indonesian bank will establish its operations in Melbourne in 2018.

As Indonesia’s fourth largest bank, with assets worth more than $40 billion and an established international footprint, BNI’s announcement is a major vote of confidence in Victoria’s financial services sector, which is responsible for over 115,000 jobs in the state.

Today’s announcement follows the signing of a Memorandum of Understanding (MoU) last year during the Victorian Invitation Program (VIP), the state’s flagship inbound trade mission aimed at boosting exports and investment.

The signing of the MoU was witnessed by the Chairman of Indonesia’s Financial Services Authority (OJK), Dr Muliaman Hadad, who has been in discussions with the Victorian Government for some time about ways to encourage greater cooperation in the banking sector between the two locations.

The presence of BNI in Melbourne will facilitate the business network to encourage deeper economic ties between Indonesia and Victoria.

Quotes attributable to Treasurer Tim Pallas

“The decision to open BNI’s Australian headquarters in Melbourne is great news for jobs and testament to the strength of our financial services sector.”

“This will pave the way for future investment and trade opportunities with our closest neighbour and affirms Victoria’s growing reputation as a global place to do business.”

Quote attributable to Chairman of Indonesia’s Financial Services Authority DrMuliaman Hadad

“I am pleased to announce that BNI will be lodging an application to establish their Australian operations with their headquarters to be based in Melbourne.”

Quote attributable to Managing Director, Treasury and International of BNI Mr Panji Irawan

“We are very excited to be able to expand our international footprint to Melbourne, Australia.”