Banks allowed links with China<\/p>\n
JAKARTA (JP): Indonesian banks face no barriers in
\nestablishing correspondent relationships with banks in China,
\naccording to a central bank official.<\/p>\n
Bambang Setiyoprodjo, the head of Bank Indonesia's division
\nfor law and secretariat affairs, said that domestic banks are
\nallowed to become correspondents of Chinese banks.<\/p>\n
\"The correspondent ties can be in the form of depository or
\nnon-depository relationships,\" he told Antara in his response to
\nexporters's complaints about the lack of banking facilities for
\ntrade activities with China.<\/p>\n
Exporters said recently that the restrictions imposed on local
\nbanks to set up correspondent relationships with Chinese banks
\nimpeded their export activities because with such a policy, the
\nbanks could not issue letters of credit for exports to China.<\/p>\n
Bambang acknowledged yesterday that the central bank once
\nimposed such a restriction but lifted it in 1985 as part of the
\ngovernment's deregulatory measures in the financial sector
\nintroduced in October of that year.<\/p>\n
A number of local businesspeople will hold a five-day trade
\nexhibition next week in Beijing, the first Indonesian trade expo
\nstaged in China since the country's normalization of diplomatic
\nrelations with Indonesia in 1990.<\/p>\n
The exhibition, to be held on Sept. 26 to Sept. 30, is being
\norganized by PT Indo Asean Persada in cooperation with Chinese
\nstate-owned companies. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/banks-allowed-links-with-china-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}