Bank merger a necessity

As far as we know, the merger of state-run banks is not a new idea. The government's announcement last Wednesday should therefore not give us reason for surprise. Monetary crisis or not, improving order in the national banking sector, which includes our state-owned banks, has for some time been considered a necessity, a measure that had to be taken because our national banking sector was becoming inefficient. It was also necessary because of future challenges that have to be anticipated.

In the banking sector specifically, scale of operations as well as a healthy state determine the degree to which banks can be helpful in actively boosting the business sector. Small banks will have an equally small capability of doing so, and only big banks will be able to participate in large-scale projects. This latter argument indicates where the challenges that confront our national banks are found.

Sine the government's aims and objectives in this matter are understood, our stance must be clear: we support the efforts and hope that subsequent stages in the process of implementation will be continued smoothly in accordance with the plans. This is important because, amid the current monetary crisis, our every move, act and measure will be closely watched by the market.

More important, every failure -- or even delay -- on our part to bring about the necessary economic reforms will surely damage our long-term interests. The point is that at the same time we are doing all this, all other nations in the world will also be making every effort to prepare themselves for the dawning of the free-trade era.

-- Kompas, Jakarta