The US bank is part of a trend of banks, including those in the wealth management space, looking to build business in Indonesia as the country moves on after a major tax amnesty programme.

Citi Indonesia has partnered with Ashmore Asset Management Indonesia by signing a memorandum of understanding to expand diversification in wealth management to customers. The agreement continues a pattern of firms seeking to build wealth and other financial services operations in Indonesia.

The first feature of this new partnership will see Citi Indonesia market mutual fund products managed by Ashmore Dana Progresif Nusantara, the US bank has said in a statement.

Citigroup has said it hopes the partnership will strengthen its reputation in Indonesia and hopes to provide the best service in wealth management in the region.

“Citi Indonesia welcomes the cooperation with PT Ashmore Asset Management Indonesia to expand diversification in wealth management to the customers,” said Batara Sianturi, chief executive officer. “In line with Citi’s mission to enable growth and economic progress, we are optimistic that the partnership will provide an optimum benefit to our customers and strengthen the development of wealth management industry in Indonesia."

The development continues a pattern of private banks and other financial organisations seeking to tap in to the onshore Indonesian wealth and asset management market, a process encouraged in part by Indonesia's recently completed tax amnesty, which has forced some players to re-think their booking centre and client coverage policy. For example, a few days' ago DBS, the Singapore-headquartered bank, said it was looking at stepping up its activities (see here). OCBC is looking to build an onshore private bank in the country (see here). Aberdeen Asset Management is also pushing to drive growth in Indonesia (see here.)