Briefly: Indonesia To Allow Higher Foreign Stakes in Local Banks

From the current limit of 40 percent, Indonesia’s Financial Services Authority has hinted that it is open to lifting the curb and allowing a higher percent of foreign ownership in local banks. The percentage of foreign ownership, however, will depend on an investor’s business plan, according to Muliaman Hadad, chairman of the Financial Services Authority, in an interview with Bloomberg. But Hadad did not say how much more the authority would allow in terms of foreign holdings in domestic banks. It will depend on the seriousness of the investor and the concept of what the investor is going to do, Hadad added. Indonesia, Southeast Asia’s largest economy, has more than 100 banks. –