OJK Encourages Banks to Go Public

Fathan Qorib, Andin Aditya Rahman

The Financial Services Authority (OJK) is encouraging domestic banks to open their shares to the general public.

As explained by Muliaman D. Hadad, Head of the Board of Commissioners at OJK, a continued increase in the number of banks that go public will not only strengthen the stock market , it will also enhance the regulatory oversight of banks.

“We encourage more and more banks to go public, this will improve the market and regulatory oversight of banks when they become openly traded companies,” stated Muliaman in Jakarta last Thursday.

Nelson Tampubolon, Executive Director of Banking Oversight at OJK, added that there are already a significant number of banks that plan to go public, and he expressed his hopes that many more will follow in the near future.

He continued by explaining that banks have much to gain from going public. One example is the opportunity to access additional capital through the stock market, which can be used to increase a banks’ capacity.

Harry Azhar Aziz, Vice Chairman of Commission XI at the House of Representatives agrees with the views of the OJK officials and believes that initial public offerings (IPO) by banks will be beneficial to both the banks themselves and the general public.

“In my opinion, IPOs will benefit both the company and the public,” stated Harry.

Harry further explained that a decision to go public depends on the bank’s shareholders themselves. Harry notes that there are circumstances under which bank shareholders may not want to undertake an IPO as this may reduce shareholder profit.

However, Harry still believes that for the banking industry, increased IPOs will improve good corporate governance, as a result of the consequent increase in ownership diversity.

(hot/kc)

Fathan Qorib, Andin Aditya Rahman

The Financial Services Authority (OJK) is encouraging domestic banks to open their shares to the general public.

As explained by Muliaman D. Hadad, Head of the Board of Commissioners at OJK, a continued increase in the number of banks that go public will not only strengthen the stock market , it will also enhance the regulatory oversight of banks.

“We encourage more and more banks to go public, this will improve the market and regulatory oversight of banks when they become openly traded companies,” stated Muliaman in Jakarta last Thursday.

Nelson Tampubolon, Executive Director of Banking Oversight at OJK, added that there are already a significant number of banks that plan to go public, and he expressed his hopes that many more will follow in the near future.

He continued by explaining that banks have much to gain from going public. One example is the opportunity to access additional capital through the stock market, which can be used to increase a banks’ capacity.

Harry Azhar Aziz, Vice Chairman of Commission XI at the House of Representatives agrees with the views of the OJK officials and believes that initial public offerings (IPO) by banks will be beneficial to both the banks themselves and the general public.

“In my opinion, IPOs will benefit both the company and the public,” stated Harry.

Harry further explained that a decision to go public depends on the bank’s shareholders themselves. Harry notes that there are circumstances under which bank shareholders may not want to undertake an IPO as this may reduce shareholder profit.

However, Harry still believes that for the banking industry, increased IPOs will improve good corporate governance, as a result of the consequent increase in ownership diversity.

(hot/kc)

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