No Uncertain Terms

Private banks must be reformed to avoid sanctions in the form of limits on share ownership. Indicators of banking management must be transparent.

June 13, 2012

It looks as if the limits on share ownership to be imposed by Bank Indonesia will do little to change the map of bank ownership in Indonesia. There will be no changes to the proportion of foreign shareholdings as long as the banks they own are still rated healthy and use the best management practices. Foreign and domestic investors will still be allowed to own up to 99 percent of private banks, as long as the banks are healthy.

The spirit behind t

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