BI tells Danamon to inject more funds

JAKARTA: Bank Indonesia (BI) demanded Bank Danamon shareholders to inject more funds into the bank to avoid violating the legal lending limit ruling after the bank acquired 75 percent shares of PT Adira Dinamika Multifinance.

Bank supervision II director at BI Aris Anwari said the central bank was concerned the acquisition would hurt Danamon if Adira's performance was not as expected. The bank had worked with the Capital Market Supervisory Agency (Bapepam) to check the Adira's soundness. -- JP