Bill on banks<\/p>\n
From Neraca<\/p>\n
A bill on banks will be discussed shortly in the House of
\nRepresentatives. An interesting side of this bill is that foreign
\ncompanies will be allowed to own 100 percent of a local bank's
\nshares.<\/p>\n
It is hoped that in the near future, many foreign banks will
\nbe operating in Indonesia. This will help to alleviate the bad
\neffects of the economic crisis.<\/p>\n
However, the bill should block the tide of banking crimes. One
\nof which is money laundering.<\/p>\n
A foreign bank must be a corporate body in the form of a
\nlimited liability company (PT). The requirements for a PT are
\nclear, as stated in Law No. 1 of 1995, which stipulates that the
\nfounders or the shareholders of a PT should consist of at least
\ntwo people or two corporate bodies.<\/p>\n
Therefore, it would be better to introduce some limitations
\nthat could yield long-term profits for the local partner, mainly
\nin terms of managerial technique and technology transfer or know-
\nhow. For example, by imitating the pattern of foreign investment,
\nas mentioned in Law No.1 of 1967, where a foreign partner is
\nallowed to have shares up to a maximum of 96 percent. However,
\nseveral decades later, foreign ownership should be reduced
\n(divested) to 55 percent in order to offer a chance to local
\npartners.<\/p>\n
On the board of directors and commissioners, the key positions
\nof the local partners must be determined. Foreigners should not
\noccupy all key positions while Indonesians get lower management
\njobs.<\/p>\n
Furthermore, short-term periodic reports should be necessary
\non the traffic of foreign exchange in a bank. There must also be
\na regulation on credit facilities for Indonesians. It should be
\navoided that foreigners take money from the Indonesian people to
\ntheir country.<\/p>\n
There should also be clear criteria for banks and bankers, and
\nBank Indonesia should no longer act as the last lending resort or
\nan agent of development. It is those two functions that have
\nturned Bank Indonesia black and blue.<\/p>\n
TAUFIK KARMADI<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bill-on-banks-1447899208", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }