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