BI: Foreign or Local Banks May Acquire Small Banks
Tuesday, 03 October, 2006 | 15:12 WIBTempo Interactive
, Jakarta: Bank Indonesia will not discriminate against local or foreign bankers in terms of buying small banks.
ďWe canít make a difference between (foreign or local banks). There arenít any rules for that. Iím afraid that if we make a difference, it could later disrupt stability,Ē said Ahmad Rizal, Director of Bank Indonesia (BI) Directorate of Licenses and Information.
He said for either foreign or local banks proposing due diligence and fit and proper tests, there will be no special treatment for them to acquire small banks in Indonesia.
Regarding BIís provision of minimum capital of Rp80 billion, set in 2007 and Rp100 billion in 2010, many small banks prefer selling their banks to foreign investors rather than a merger. This causes foreign ownership of local banks to increase.
The last data even shows that currently foreign ownership of banks in Indonesia has already reached 42 percent from the total number of banks.
Suryani Ika Sari