Fitri Novia Heriani, IGAP Trisnajaya
During a public hearing at the House of Representatives (House), Tuesday (26/2), Indonesian Banks Association (Perbanas) suggested that Bank Mandiri and Bank BNI should merge to establish one of the biggest banks in South East Asia, which will increase competitiveness of national banks on international level.
“Bank Mandiri is now the eighth largest bank in Asia. If Bank Mandiri and Bank BNI are merged, it would reach number five or six,” stated Sigit Pramono, Chairman of Perbanas.
Sigit hopes that the House will support the proposal to merge all stated-owned banks in Indonesia to establish the biggest bank in the ASEAN region. The draft of the proposal is already submitted for consideration to be included in the Bill on Banking.
By merging state-owned banks, Sigit argued, it will be easy for the Government to intervene and control the policy of the merged banks. Iit will also be easy for the bank to expand its activities to other countries.
“However, it should be noted that maintaining the domestic market is also important,” stated Sigit.
Meanwhile, Kamaruddin Sjam, Member of Commission XI of the House, agreed with the proposal to merge national banks. He also explained that the merger would establish an international scale state-owned bank, which would be very beneficial, especially in times of a crisis.
The bank could stay strong and continue operating if a crisis hits the country because it is secured with its operation outside the country, Kamaruddin concluded.
(jt/hot)
Fitri Novia Heriani, IGAP Trisnajaya
During a public hearing at the House of Representatives (House), Tuesday (26/2), Indonesian Banks Association (Perbanas) suggested that Bank Mandiri and Bank BNI should merge to establish one of the biggest banks in South East Asia, which will increase competitiveness of national banks on international level.
“Bank Mandiri is now the eighth largest bank in Asia. If Bank Mandiri and Bank BNI are merged, it would reach number five or six,” stated Sigit Pramono, Chairman of Perbanas.
Sigit hopes that the House will support the proposal to merge all stated-owned banks in Indonesia to establish the biggest bank in the ASEAN region. The draft of the proposal is already submitted for consideration to be included in the Bill on Banking.
By merging state-owned banks, Sigit argued, it will be easy for the Government to intervene and control the policy of the merged banks. Iit will also be easy for the bank to expand its activities to other countries.
“However, it should be noted that maintaining the domestic market is also important,” stated Sigit.
Meanwhile, Kamaruddin Sjam, Member of Commission XI of the House, agreed with the proposal to merge national banks. He also explained that the merger would establish an international scale state-owned bank, which would be very beneficial, especially in times of a crisis.
The bank could stay strong and continue operating if a crisis hits the country because it is secured with its operation outside the country, Kamaruddin concluded.
(jt/hot)