JAKARTA, May 21: Indonesia on Tuesday approved the purchase by Singapore’s DBS of a 40 per cent stake in Bank Danamon, but demanded the city-state open up its financial sector before any full takeover.

More than a year after DBS launched its bid to make the biggest ever bank acquisition in Indonesia, central bank governor Darmin Nasution said it could acquire part of Danamon but could not yet take a controlling stake.

“We will not give them more unless there is some reciprocity,” he said, referring to demands that Singapore give Indonesian banks access to its market in return for the deal.

A spokesman for Singapore’s central bank said the city-state and Indonesia were “exploring further access into each other’s markets”.—AFP