Party lawmaker Lili Asdjudiredja has called on the House of
Representatives to urge Bank Indonesia and the government to prevent
Singaporean DBS Bank from acquiring 99 percent of Bank Danamon’s shares
as it would create a banking monopoly.
Both banks are owned by Temasek Holdings, the Singaporean sovereign wealth fund fully controlled by the island-city government.“Even
if the deal on Danamon’s acquisition has already been made, it must be
annulled because it will affect Indonesia’s banking sector and Danamon’s
domestic priority customers,” he said.
Lili, also a businessman, said that if Danamon wanted to sell its
shares, it should comply with the Indonesian Banking Law by first
offering its shares to other shareholders outside the majority ones.
they [other shareholders] are not interested, Danamon could offer its
shares to third parties, including DBS. In this case, DBS is a third
party and outsider even though it is owned by Temasek Holdings,” he
He warned that if the plan was not cancelled, it would strengthen
foreign (i.e. Singaporean) ownership in Danamon and go beyond the
central bank’s regulation on a single presence.
him, the deal had not been conducted transparently because the central
bank had not been informed of it despite Danamon being publicly listed.
Lili who chaired the House’s special committee assigned to
investigate the Bank Bali scandal in 1999, accused Temasek of creating a
monopoly by using the transitional period in the bank’s supervision
from the central bank to the newly established Financial Service
Lili also told BI to meet with the Singaporean financial service
authority to reach a mutual understanding in implementing the reciprocal
principle, since Indonesian banks are currently denied the right to
acquire Singaporean banks and to establish branch offices in the
DBS has prepared S$9.1 billion (US$7.2 billion) to buy 99 percent of
Bank Danamon, with the aim of creating Indonesia’s fifth-largest lender
by assets. (nvn)