www.thejakartaglobe.com - As Singapore’s DBS Group awaits approval from Indonesian authorities for its multibillion dollar purchase of a controlling stake in Bank Danamon, the real battle is just beginning.
Some lawmakers have raised the idea of a reciprocal principle in investment with Singapore and limitations on foreign ownership.
Harry Azhar Azis, a deputy chairman of House of Representatives Commission XI, which oversees banking, said on Wednesday that the House was preparing a draft revision of the 2009 Banking Law that would require Indonesian lenders to be given the same privileges in Singapore as those offered to Singaporean companies here. (source)
Arif Budimanta, a member of the House Commission, was worried foreign lenders would eat into the market share of local banks.
“You have to go through the government’s approval, securing lawmakers’ permission. It has never been easy,” said Sigit Pramono, chairman of the Indonesian Banking Association.
Source: http://www.thejakartaglobe.com/home/bank-danamon-purchase-sparks-new-battle/509379 - April 5, 2012
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