Indonesia's Bank Mandiri opened a branch in Shanghai on Friday as part of its plans to expand its international banking business and promote increased bilateral trade.

Bank Mandiri is the only Indonesian bank with a full branch office in China. The new branch augments the bank's existing overseas network, which includes offices in Hong Kong, Singapore, Timor Leste, Malaysia, the Cayman Islands, and the United Kingdom, according to Bank Mandiri Chief Executive Officer Zulkifli Zaini.

"Through our Shanghai branch, we will develop new business and collaborative opportunities with both Chinese companies and companies from other Asian countries that wish to trade or invest in Indonesia, or vice versa," he said.

Bank Mandiri officials said the branch will focus on international banking, including trade services, trade financing, project financing, and treasury transactions involving existing Bank Mandiri customers, particularly those that have trade links with China and other Asian countries.

"We are committed to supporting increased trade between Indonesia and China, and to strengthening economic cooperation between the two countries," Zulkifli said.

Data from the Indonesia Trade Ministry show that trade with China has grown by an average of 28.42 percent per annum over the past four years, from $18.2 billion in 2007 to $49.15 billion at the end of last year. China is now Indonesia's second largest trading partner.

Zulkifli said the branch will carry out banking transactions in many foreign currencies, but not renminbi, because of a Chinese regulation governing new foreign bank branches in China.

"We are optimistic that we will be able to meet the requirement for banking services in renminbi, which is to post profits in two consecutive years within three years of operation," Zulkifi said.

Bank Mandiri's Shanghai branch has recorded assets of $48.22 million, which are expected to be increased up to about $120 million by the end of this year, he added.