''We entered the Hong Kong market in 1991 and set up a representative office as we wanted to establish a bridge-head and develop links in the local market by promoting our name here and getting to know the banking authorities better,'' said Winston Peckson, chief executive with Danamon Finance Co (Hong Kong) Ltd.

''Above all, it was a listening post to monitor and get to know at first hand the larger China business.'' In Indonesia, Bank Danamon is the second largest among private banks, with assets valued at US$2.5 billion last year; its capital base last year was about US$200 million.

''Though we are now active in Hong Kong, our competitors need not be alarmed - we are not here to take business away from them,'' Mr Peckson said. ''There is enough for everyone. We are here to share and support each other.

''A number of our parent bank's clients are beginning to channel business through our branch in Hong Kong. We are confident that, in time, our local operation will be profitable enough.

''Hong Kong is the gateway into China, and Indonesian businessmen are active here. So, it makes economic sense for us to focus on the China market through Hong Kong and expand our activity here.

''We offer trade finance, loans, and deposit services, but our focus is on short-term trade finance of the self-liquidating type.'' In recent years, Indonesia has been successful in its attempts to move away from its dependency on oil exports and, because of this, has seen a dramatic rise in non-oil exports.

And Hong Kong plays a strategic role in this trade, serving as an important entrepot for Indonesia.

Bank Danamon, which is listed on the Jakarta Stock Exchange, was established in 1956.

It is one of the few Indonesian banks which is not part of any leading industrial house. Its emphasis is on the financial sector.