JAKARTA: Bank Indonesia will require foreign investors to share ownership in banks in order to limit the dominance of institutional ownership in the financial institutions.
An official in the Bank Indonesia said the policy which required sharing ownership, especially for foreign investors, will not conflict with government regulations saying that foreign investors could secure 99% shares in a bank.
The provision, he said, will be nationally applied to facilitate the supervision of banks.
Philosophically, a bank which is controlled by some investors will closely watch each other . Currently, the central bank is still making the boundary simulation on banking stock ownership.
The central bank will also implement a tiered licensing for foreign investors, along with the similar policy conducted by the authorities in Southeast Asia.
"In the policy, foreign investors can secure 99% shares. However, the policy does not mention whether the ownership can be controlled by a person or institution. So, it does not matter if a bank is fully controlled [99%] by some foreign investors, "he told Bisnis last week. (T03/aph)