Perbanas' new face

Perbanas' new face

The performance of the Indonesian Association of Commercial
Banks (Perbanas) drastically dropped following the onset of the
economic crisis in mid 1997. The crisis forced the government to
bail out banks grouped within Perbanas.

Perbanas, however, has begun to change. The association made
three main decisions during its 15th congress last week.

First, Perbanas will not only include private commercial banks
but also other commercial banks as well. That is why the
organization has changed its name from the Indonesian Association
of Private Commercial Banks to the Indonesian Association of
Commercial Banks.

The move was made following the acquisition of a number of
major Indonesian banks, such as Bank Danamon, Bank Central Asia
(BCA) and Bank Niaga, by foreign parties.

Second, Perbanas is committed to improving the function of
banking intermediation in a bid to speed up Indonesia's economic
recovery.

Third, Perbanas is also committed to implementing the
principle of good corporate governance and to preventing money
laundering.

Perbanas should thus team up with other concerned agencies to
carry out the three decisions.

Last but not least, Perbanas should revive public confidence
in the country's banking industry.

-- Bisnis Indonesia, Jakarta