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.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsHolding company paves way for specialty state banks: BI
Damaged notes: A Bank Indonesia (BI) employee marks damaged notes at a cash replacement counter on Jan
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
.img_assist_custom-640x427.jpg)
Damaged notes: A Bank Indonesia (BI) employee marks damaged notes at a cash replacement counter on Jan. 26 as part of a BI policy to provide the public with a good-quality medium of exchange. BI governor Agus Martowardojo has voiced support for the governmentâs plan to create a holding company for state-owned banks, saying doing so will boost the banks' efficiency. (thejakartapost.com/Wienda Parwitasari) (BI) employee marks damaged notes at a cash replacement counter on Jan. 26 as part of a BI policy to provide the public with a good-quality medium of exchange. BI governor Agus Martowardojo has voiced support for the governmentâs plan to create a holding company for state-owned banks, saying doing so will boost the banks' efficiency. (thejakartapost.com/Wienda Parwitasari)
D
span class="caption">Damaged notes: A Bank Indonesia (BI) employee marks damaged notes at a cash replacement counter on Jan. 26 as part of a BI policy to provide the public with a good-quality medium of exchange. BI governor Agus Martowardojo has voiced support for the government's plan to create a holding company for state-owned banks, saying doing so will boost the banks' efficiency. (thejakartapost.com/Wienda Parwitasari)
The establishment of a holding company for Indonesian state-owned banks will boost efficiency in the banks' business plans and strategy, allowing Indonesia to see large-scale specialty lenders by 2018, Bank Indonesia Governor Agus Martowardojo has said.
According to Agus, the holding company may allocate special different functions to each state-owned lenders, namely Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI) and Bank Tabungan Negara (BTN).
"It can be done by a holding company. I project that the initial benefits will be the alignment of business plans and business strategies," he said in Jakarta on Thursday, adding that greater benefit could be obtained if the banks essentially merged into one firm, operated by one board of directors.
Earlier, the State-Owned Enterprises Ministry hinted that PT Danareksa would be the investment holding company, or the parent company of the four state-owned banks, in a bid to strengthen the national banking system, with greater equity or capital, as well as the ability to seek greater access to funding.
"Danareksa is certainly eligible to become the holding company of state banks," said the ministry's deputy of financial, survey and consulting services, Gatot Trihargo, as quoted by Antara news agency.
By forming a holding company, he explained, the four state banks, as the subsidiaries, would be synchronized, including in IT. However, the establishment of the holding company might take a long time, as the banks were publicly listed companies, he noted.
"Although the ministry is the controlling shareholder in the state-owned banks, many investors in the capital market also hold stakes," he said. Therefore, any strategic changes must be subject to the approval of the general meeting of shareholders, and confidential matters cannot be immediately disclosed. (ags)
