JAKARTA: Bank Indonesia compelled local government banks (BPD) which are outperformed in managing their assets have to seek strategic investors, besides local governments.
It is based on the implementation of bank ownership regulation related with performance level and good corporate governance (GCG).
Central bank also said foreign investors are still able to have 99% interest in national bank if they are passed the test from central bank.
Executive Director of the Banking Regulation and Research of Bank Indonesia (BI) Mulya Siregar said many BPDs which were collided on capital problem will conduct a business expansion.
"BPDs’ capital will not be enough to expand with the current condition. Especially for the BPD which wants to become a regional champion, as it needs additional capital," he told Bisnis on Wednesday (18/7) evening.(T03/msw)
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