standard Chartered has won a controlling stake in Indonesia's seventh-largest bank with a bid of $305 million (170 million pounds), gaining a major foothold in the country after two previous attempts failed.

London-based stanChart sTAN.L , together with car distributor PT Astra International Tbk, offered 2.77 trillion rupiah (Us$305 million) to the government for 51 percent of PT Bank Permata, Finance Minister Boediono said.

The price is 10 percent higher than the cash-strapped Indonesian government had initially hoped for.

The bid works out to be 3.2 times Permata's 2003 book value and is the highest price the Indonesian government has received in the sale of state banks in recent years. Previous state bank sales have been below two times book value.

"It is a very rich price. But it has been their (stanChart) dream to get something in Indonesia for a while," said a singapore banker.

standard Chartered also has operations in other parts of Asia, Africa and the Middle East. In 2002, the bank set out to increase returns from its wholesale banking operations through acquisitions in emerging market countries.