Strategic Partnership

STANDARD CHARTERED PLC
26 July 1999


The following announcement was made in Indonesia today,

IBRA AND STANDARD CHARTERED TO RECAPITALISE BANK BALI

Standard Chartered Acquires Management Control

The Indonesian Bank Restructuring Agency ('IBRA') today announced that it has
entered into a strategic partnership with Standard Chartered Bank ('Standard
Chartered').  For the purpose of recapitalising Bank Bali, the bank was
transferred by Bank Indonesia to IBRA on 23 July 1999.  The effect of such a
transfer pursuant to Banking Law number 7/1992 as amended by Law number
10/1998 and Government Regulation number 17/1999, among others, is that IBRA
will have management control over Bank Bali.  As part of the agreement between
IBRA and Standard Chartered, IBRA together with Standard Chartered has formed
management and supervisory teams to manage Bank Bali providing Standard
Chartered with effective management control as from 26 July 1999.

The Investment Agreement signed today by IBRA and Standard Chartered
stipulates that IBRA may sell to Standard Chartered up to 20 per cent of
IBRA's shares after the recapitalisation via the rights issue.  IBRA will act
as a stand-by-buyer in Government recapitalisation rights issues in accordance
with the Joint Decree.  Standard Chartered estimates that Rp 4.3 trillion
(about GBP 430 million) will be required to bring Bank Bali into compliance
with the Bank Indonesia's required 4 per cent capital adequacy ratio.

Consistent with the Government's announced recapitalisation programme,
Standard Chartered will have the ability to acquire 100 per cent of IBRA's
shares in Bank Bali over the coming years through a call option.  Standard
Chartered has also agreed to give IBRA a put option on its shares at a price
of at least the rights issue price, exercisable after five years.  This will
enable IBRA to pay back the Government for the funds it commits to the
recapitalisation.

Commenting on the partnership, IBRA Chairman Glenn Yusuf stated, 'This
agreement demonstrates a vote of confidence by the international financial
community on the long term potential of the country's retail and commercial
banking market.  It marks a major milestone for IBRA in its continuing efforts
to rehabilitate the Indonesian banking sector.'

Rana Talwar, Standard Chartered's Group Chief Executive, stated, 'Standard
Chartered has had a long-standing commitment to serving its customers in
Indonesia.  We have confidence in Indonesia's economy and this strategic
partnership will strengthen considerably Standard Chartered's presence in
Indonesia.  We now have a firm platform to develop a leading commercial bank
in Indonesia.'

'We will be a powerful force combining Bank Bali's entrepreneurial management
team, strong distribution network and excellent investment in technology and
Standard Chartered's proven risk management processes and controls and highly
skilled sales and marketing teams.'

Following today's announcement, the Supervisory Team of Bank Bali will
comprise IBRA nominees, Dr J B Sumarlin, the Chairman, who is currently
President Commissioner of Bank Bali, and I N Suwandha, who is currently a
Commissioner of Bank Bali.  IBRA will also appoint a new management team. 
Hendri Kurniawan and I G M Mantera, who are currently Directors of Bank Bali,
will remain as part of the management team, together with appointees from
Standard Chartered.

The supporting team will consist of a blend of Bank Bali and Standard
Chartered executives which includes Budi Halim, Andrew Hardie, Ganda Kusuma,
Giorgino Godong, Rusli Suryadi, who are currently Directors of Bank Bali.

Douglas Beckett, who was previously Standard Chartered's Regional Head,
Corporate and Institutional Banking, SE Asia, will be appointed to lead the
management team of Bank Bali.  In line with Indonesian banking regulation,
this team will be reviewed by Bank Indonesia for approval.

Standard Chartered was advised by Warburg Dillon Read.

IBRA was advised by Bahana, Danareksa and Lehman Brothers.

Note to Editors:

Bank Bali, with over 280 branches, is widely regarded as one of Indonesia's
top consumer banks.  With well over one million customers and a deposit market
share of nearly 3 per cent, it represents a significant opportunity for
Standard Chartered to expand its presence in Indonesia.  Standard Chartered's
Group Chief Executive, Rana Talwar, has stated that the Bank is committed to
strengthening its presence in Asia through organic growth and acquisitions.

Standard Chartered PLC, listed on the London Stock Exchange, is a world class
global emerging markets bank with over 25,000 employees and a presence in
nearly 50 countries.  It opened its first branch in 1863 and currently
operates 5 branches in Indonesia with over 800 employees.

For further information please contact:

Tim Halford, Director of Corporate Affairs     0171 280 7159
Pam McGann, Group Investor Relations Manager   0171 280 7164