Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami
Fathan Qorib, Robert Sidauruk
The banking industry is one sector that will highly exposed to the implementation of ASEAN Economy Community (AEC) next year. While the liberalization of this sector under the AEC framework will not start for six years, the Financial Services Authority (OJK) believes that the domestic banking industry needs to accelerate its readiness and should use inorganic growth to do so.
“It will take longer if we only rely on organic growth. Therefore, we need to consider inorganic approaches as an option,” said Muliaman D Hadad, Chairman of the Board of Commissioners of the OJK, in Jakarta on Monday.
According to Mr. Hadad, for the past 10 years related stakeholders have been fully committed to supporting the inorganic growth of banks through mergers and acquisitions or other forms of joint venture companies. This is believed to be more effective in boosting the development of banks compared to organic growth which focuses on production and revenue enhancement.
Bank Indonesia (BI), for example, has redefined the criteria of anchor banks or national banks that can be promoted as international-scale banks, in an effort to realize inorganic growth in the banking industry. Under this policy, Mr. Hadad said that banks no longer need to satisfy the numerous detailed requirements to be deemed as an anchor bank.
“As long the bank has large capacity in respect of its capital and is able to perform acquisitions, then they can be considered as an anchor bank”, added Mr. Muliaman.
To stimulate inorganic expansion among national banks, the OJK is currently promoting state-owned banks as a role model for other national banks. Mr. Muliaman said that if they can effectively implement inorganic growth, it is expected that this will stimulate other banks and create efficiency in the domestic banking industry.
Director of PT Bank Mandiri, Budi G Sadikin, has indicated that inorganic growth is one of the business strategies that is currently being considered by Bank Mandiri in preparation for the AEC.
Mr. Sadikin also believes that Indonesia’s banking industry is still lags behind other countries such as Malaysia and Singapore. Consequently, to only rely on organic growth will not adequately narrow the gap between domestic and foreign banks.
“We want to ensure that we are ready for AEC,” said Mr. Sadikin.
(hot/kc)
Fathan Qorib, Robert Sidauruk
The banking industry is one sector that will highly exposed to the implementation of ASEAN Economy Community (AEC) next year. While the liberalization of this sector under the AEC framework will not start for six years, the Financial Services Authority (OJK) believes that the domestic banking industry needs to accelerate its readiness and should use inorganic growth to do so.
“It will take longer if we only rely on organic growth. Therefore, we need to consider inorganic approaches as an option,” said Muliaman D Hadad, Chairman of the Board of Commissioners of the OJK, in Jakarta on Monday.
According to Mr. Hadad, for the past 10 years related stakeholders have been fully committed to supporting the inorganic growth of banks through mergers and acquisitions or other forms of joint venture companies. This is believed to be more effective in boosting the development of banks compared to organic growth which focuses on production and revenue enhancement.
Bank Indonesia (BI), for example, has redefined the criteria of anchor banks or national banks that can be promoted as international-scale banks, in an effort to realize inorganic growth in the banking industry. Under this policy, Mr. Hadad said that banks no longer need to satisfy the numerous detailed requirements to be deemed as an anchor bank.
“As long the bank has large capacity in respect of its capital and is able to perform acquisitions, then they can be considered as an anchor bank”, added Mr. Muliaman.
To stimulate inorganic expansion among national banks, the OJK is currently promoting state-owned banks as a role model for other national banks. Mr. Muliaman said that if they can effectively implement inorganic growth, it is expected that this will stimulate other banks and create efficiency in the domestic banking industry.
Director of PT Bank Mandiri, Budi G Sadikin, has indicated that inorganic growth is one of the business strategies that is currently being considered by Bank Mandiri in preparation for the AEC.
Mr. Sadikin also believes that Indonesia’s banking industry is still lags behind other countries such as Malaysia and Singapore. Consequently, to only rely on organic growth will not adequately narrow the gap between domestic and foreign banks.
“We want to ensure that we are ready for AEC,” said Mr. Sadikin.
(hot/kc)