Foreign ownership limit removed<\/p>\n
JAKARTA (JP): Foreign investors are now allowed to buy up to
\n99 percent of a bank's shares, the Jakarta Stock Exchange (JSX)
\nannounced on Friday.<\/p>\n
The JSX said the move, which became effective on Friday,
\nfollowed the government's recent decision to raise the limit on
\nforeign ownership of the country's banks.<\/p>\n
According to a recently issued government regulation, which
\nsupplements Banking Law No. 10\/1998, the maximum amount of bank
\nshares which can be listed on the stock exchange is 99 percent.<\/p>\n
The remaining 1 percent, which must be owned by Indonesian
\ncitizens or local companies, should not be listed. However,
\nforeigners, individuals or institutions are allowed to buy 100
\npercent of listed shares, according to the new regulation.<\/p>\n
The JSX said it allowed foreigners to buy up to 99 percent of
\na bank's shares because most of the banks traded on the stock
\nexchange had a company listing or 100 percent listing.<\/p>\n
There were 21 domestic banks traded on the JSX as of May 20
\nand only two of them were partially listed.<\/p>\n
Foreigners previously were allowed to buy only 49 percent of a
\nbank's listed shares. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-ownership-limit-removed-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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