The national banking sector
must be prepared for the ASEAN Economic Community (AEC) 2015. Indonesia’s
market which was geographically expansive with highest number of population
must be a target of expansion for foreign banks.
For that matter before MEA 2015 was applied, regulations
for the banking sector must be tightened to allow national banks to grow and
prepare themselves. The measure would be Bank Indonesia must tighten regulations
for foreign banks.
Public support came by the hordes for BI’s plan to
restrict shares ownership in all banks in Indonesia. Supposedly BI controlled
the ownership structure of shares of banks in Indonesia particularly foreign
ownership. The prevailing foreign ownership in national banks was clear
indication that the banking sector in Indonesia was highly prospective.
As told, BI was now preparing a regulation to restrict
ownership in national banks. As planned, the new regulation which was to be
released by end of July would restrict ownership percentage to maximum 40% for
financial institutions of the banking sector, 30% or non-bank institutions and
20% by personal ownership and families.
If the new regulation were actually released, the public
was hoping that the rules was nit only applicable the retro-active way. If BI
rules were retro active it would be most heartening and be widely acclaimed by
the public because it was being awaited for.
In addition to the above, the public also expected
application of the multiple license principle on foreign banks. The way it was
happening today the single license principle was applied which made it easy for
foreign banks and joint-venture banks to expand business in Indonesia. In the
neighboring countries, the system being applied was multiple license.
Many circles encouraged BI to apply multiple license as
implementation of the reciprocal principle. BI was urged to make a sound
regulation on expansion of foreign banks and joint venture banks. Fox example
if they planned to open a branch in the region, they should first consider the
impact on People’s Credit Bank (BPR) which operated there.
It should never happen that the presence of foreign banks
or joint venture banks stopped BPR efforts which served the interest of email
business and macro business. Protection through policies would safeguard
national interest which must not be scarified even in the name of globalization
or liberalization.
In line with the effort to restrict ownership of shares
by foreign or joint venture banks and confine their operation zones, the
Government was also expected to pay more attention to medium, small and micro
business (UMKM) who were the backbone of national economy and whose number came
to tens of millions. It was about time that UMKM got special attention from
national banks.
Therefore skim credit for UMKM group must be procured
considering various factors about which they often complained. Easy access to
credit within the context of financial inclusion must be facilitated because
the potential of national UMKM was tremendous.
The role of UMKM was not just as economy bumper in time
of crisis but also as shockbreaker during overheating of the economic machine.
The economy machine would cool down if the role of big scale business were lessened
and the small business which by far outnumbered big business be constantly
enhanced.
If the banking sector adopted such policy, the concept of
financial inclusion which was today being clamored would be more successful. The
business sector as business incubator would give its sound support. For that
matter, the banking sector as regulator could maintain collaboration with
banking associations and business associations in promoting UMKM accessibility
to banks.
It was about time that the Tabunganku (my savings
account) product as incentive for the lower segment people be jacked up higher
to drum up more saving accounts which means that more and more people could
benefit from banking services. The more banks being active in releasing the
Tabunganku product, the sooner the application of financial inclusion (program)
nationwide.
The faster the process was exercised, the better because
by the time MEA 2015 was applied the UMKM circles in Indonesia would be ready
to welcome it. One thing to be cautious about was the heavy inflow of products
from ASEAN 5 countries (which included Indonesia) i.e. Singapore, Thailand,
Malaysia and the Philippine. These four nations included in ASEAN-5 were by far
more ready to face the MEA 2015 compared the next ASEAN-5 states like Vietnam,
Laos, Myanmar, Cambodia and Brunei Darussalam.
The five last mentioned states were relatively left
behind compared to the first mentioned ASEAN 5 who were the pioneers of ASEAN
establishment. Within the context of MEA 2015 the traffic of people, goods and
capital would be more free to move in and out of ASEAN 10. Unless Indonesian
businesspeople prepare themselves, it was feared that their products would lose
competition with that of other ASEAN states.
In this case to facilitate access to financial
institutions especially would be the key factor, not just to realize the
financial inclusion program but also to help national business people to face
MEA 2015.
Business News - July 13, 2012
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