Foreign investors in Indonesian banks

The latest government plan is to allow foreign investors to control more than 51 percent of shares -- possibly even up to as much as 99 percent -- in Indonesian banks. The reasoning behind the plan is that this country very much needs foreign participation in order to revive its banking sector as well as its economy as a whole.

Considering the reality that our national banking sector is a shambles, the benefits that are being offered to foreign investors make sense. Our banking sector, which is, at present, undergoing a complete overhaul, needs money, relief efforts and credibility. The admission of foreign capital will hopefully restore this sector, and this would unquestionably have a most positive effect on our national economy.

Although we are now in a cornered position, we hope the plan to give foreign investors a bigger portion will be given careful advance consideration. This involves, especially, the degree to which foreign banks can contribute to our national development efforts. The fact is that the presence of foreign banks has, apart from a positive position, also a negative side. This is because their interests are not always in harmony with ours.

Our position is that however much we are pressed for time, openings must be found to give our own domestic entrepreneurs the opportunity. We must not offer all our economic sectors to foreigners.

-- Bisnis Indonesia, Jakarta