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Ian WhiteheadExecutive General Manager Indonesia

Commonwealth Bank of Australia

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Supported by 2,338 staff, an

increase 58% from 2009, 1,504 staff

Commonwealth Bank - in Indonesia

• Commenced in Indonesia – 1992, 99% owned by Commonwealth Bank• 91 branches in 32 cities, with more planned in the future• 142 ATMs, partnership agreements Bersama / Prima/ BCA, access via 70,000 ATM’s in Indonesia• Over 300,000 customers, Internet and Mobile Banking & 24 hours Call Center (021) 5000 30• 24 hours Live Facebook & Twitter @CommBank_ID

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Supported by 428 staff, an increase of 7% from 2009,

398 staff

Commonwealth Life - in Indonesia

• Commenced in Indonesia – 1992• Commonwealth Life - 80% owned by Commonwealth Bank, 20% by PT Gala Arta Jaya.• 34 offices across 20 major cities, more than 9,000 Sales Agents across Indonesia  • 24 hours Call Center (021) 500 525

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Supported by 33 staff, an increase of 37% from 2009,

24 staff

First State Investments - in Indonesia

First State Investments• Commenced in Indonesia – 2003• Distributions partners: 26 (banks and securities companies)

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Commonwealth Bank Commonwealth Life First State Investments

1504

398

24

2338

428

33

Staff Member Growth

2009 2014

58%increase

37%increase

7%increase

Commonwealth Bank Group - in Indonesia

……and over 900,000 customers….……over 3,000 staff ….

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What is important……….

• Getting “parent / shareholder” engagement from the start….

• Ensuring head office spends time in the market (touching and feeling)

• Ensuring the local team know that the head office supports the business – not only with investment, but wants to learn understand (and not judge)

• Developing deep, wide networks and relationships – and spending time investing in them.

• Recognising cultural differences - Indonesian customs and culture – language religious, ethnicity, cross cultural etc…

• Developing a strong local team

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Closing Comments……….

• The importance of doing your homework, knowing and operating in Indonesia for some time, and “know” before the investment decisions;

• Choosing the right local partner – and making sure that there is an alignment of interests; invest in that relationship.

• Choosing good local advisors, who have experience, in your sector, across regulatory, legal, provincial complexities.

• Developing capability transfer and corporate social responsibility programmes that partner with local communities and make it clear you are a long term investor (and commitment).

• Accepting that risk cannot be eliminated but managed – and therefore adopting a risk framework that takes into account local conditions;

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Closing Comments……….

• Finally, patience and perseverance

• Create a culture that ensures the greater “organization” continues to learn about the markets they operate in (and the differences)

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Thank you