Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fitri Novia Heriani, IGAP Trisnajaya
During a public hearing on the Banking Bill held by the House of Representatives (House), PT Bank Mandiri Tbk (Bank Mandiri) proposed that the Government and the House prohibit foreign banks in Indonesia from managing rupiah currency.
This prohibition is in accordance with Bank Indonesia’s (BI) plan to implement reciprocity principle for banking activities.
Zulkifli Zaini, President Director of Bank Mandiri, stated that currently, the principle of reciprocity is not met.
For example, Bank Mandiri’s branch office in Shanghai is prohibited from managing Chinese Renminbi. However, Chinese banks in Indonesia are free to manage Indonesian Rupiah through their branch offices.
“Only after three years of operation may we manage Chinese Renminbi, provided that the bank is gaining profit,” stated Zulkifli, at the hearing, Wednesday (6/2).
As a result, Zulkifli urged that the Banking Bill must clearly stipulate restrictions for foreign banks in Indonesia in order to protect domestic banks.
Maruarar Sirait, Member of the Commission XI of the House, responded that the House will implement the principle of reciprocity by lowering foreign ownership of Indonesian banks’ shares to maximum of 40% from the current possible 99% ownership.
“Revision on Banking Law was initiated by the House and its formulation is really difficult,” stated Maruarar.
Maruarar concluded that in order to properly implement the reciprocity principle, state-owned banks must cooperate and disregard their business competition.
(jt/hot)
Fitri Novia Heriani, IGAP Trisnajaya
During a public hearing on the Banking Bill held by the House of Representatives (House), PT Bank Mandiri Tbk (Bank Mandiri) proposed that the Government and the House prohibit foreign banks in Indonesia from managing rupiah currency.
This prohibition is in accordance with Bank Indonesia’s (BI) plan to implement reciprocity principle for banking activities.
Zulkifli Zaini, President Director of Bank Mandiri, stated that currently, the principle of reciprocity is not met.
For example, Bank Mandiri’s branch office in Shanghai is prohibited from managing Chinese Renminbi. However, Chinese banks in Indonesia are free to manage Indonesian Rupiah through their branch offices.
“Only after three years of operation may we manage Chinese Renminbi, provided that the bank is gaining profit,” stated Zulkifli, at the hearing, Wednesday (6/2).
As a result, Zulkifli urged that the Banking Bill must clearly stipulate restrictions for foreign banks in Indonesia in order to protect domestic banks.
Maruarar Sirait, Member of the Commission XI of the House, responded that the House will implement the principle of reciprocity by lowering foreign ownership of Indonesian banks’ shares to maximum of 40% from the current possible 99% ownership.
“Revision on Banking Law was initiated by the House and its formulation is really difficult,” stated Maruarar.
Maruarar concluded that in order to properly implement the reciprocity principle, state-owned banks must cooperate and disregard their business competition.
(jt/hot)