The Bank of China (BOC) is bidding for Bank Internasional Indonesia's share held by Temasek Holdings of Singapore, sources from the Caijing magazine said.

The Bank Internasional Indonesia is Indonesia's sixth biggest bank.

Last week the BOC submitted a Letter of Intent for the Temasek Holdings. The BOC has already been shortlisted for the bidding.

Indonesia has a population of 240 million and boasts abundant natural resources. The country's GDP increased by 6.3 percent in 2007 and its financial industry has attracted many overseas investors. However, the Indonesian financial market is scattered and how to develop it after the bidding would be a challenge.

A senior analyst from a Chinese bank said that trade between the two countries could stimulate financial business for the banks, but the BOC should be more careful under the shadow of high stock prices.

At the same time, analysts from overseas banks said bidding for the Bank Internasional Indonesia has more strategic values for those banks that have already entered the Indonesian market, such as the HSBC. Ultimately the pressing task facing the BOC at present is to further develop domestic market.

For more details, please read the full story in Chinese. (http://www.caijing.com.cn/todayspecx/finance/2008-03-12/52134.shtml)

(China.org.cn March 13, 2008)