TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Economy in brief: OJK wants capital injection into sharia state banks
The Financial Services Authority (OJK) has urged the government to inject capital into sharia state lenders that will be merged later this year so the banks can channel loans to the infrastructure sector
Change Size
T
he Financial Services Authority (OJK) has urged the government to inject capital into sharia state lenders that will be merged later this year so the banks can channel loans to the infrastructure sector.
OJK chairman Muliaman Hadad said Monday that he hoped the merger plan would create a bank large enough to be included in the BUKU III category, which has between Rp 5 trillion (US$387 million) and Rp 30 trillion core capital.
'The target is that in 2015 [the merger] will be realized. We will ask the government to add capital, at least the [merged lender] could be categorized as a BUKU III bank,' Muliaman said without elaborating how much funding would be required from the government, as reported by Antara news agency.
A BUKU III lender can make transactions in rupiah and foreign currency and can also own a 25 percent stake in a sharia financial institution in the country or in another Asian country.
