Friday 12 February 2010

Ministry Seeks Delay in Disposition of Indonesia's State Banks

The Ministry of State-Owned Enterprises has asked Bank Indonesia to give it another two years to comply with the "single presence" policy, which requires that the country's four state-owned banks be merged, shifted to a joint holding company or sold. Parikesit Suprapto, the ministry's deputy for banking and financial institutions, said it will be difficult to comply with Bank Indonesia's deadline of the end of this year. Issued in 2007, the single presence policy is aimed at consolidating the banking sector and improving transparency. It requires any majority shareholder in more than one bank to merge the banks in question, from a joint holding company for them or divest its shares in all but one bank.
Source: thejakartaglobe.com, 3 February

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