Indonesia Plans to Set up Holding Company for State Banks

Jakarta, 08 Jumadal Awwal 1437/17 February 2016 (MINA) – The Ministry of State-Owned Enterprises (SOE) will soon form a holding company (holding) that houses the state- owned banks. The plan, the state bank’s holding will be completed in 2018.

Deputy of Financial Services, Survey Services, and Consulting SOE Trihargo Gatot said the establishment of a state bank holding no longer just a virtual holding as planned so far.

“Target bank holding completed in 2018. We’ve had discussions with the managing director of all banks in Ship Kelud Karimun. This is something that can be done. With this holding, the strengthening of the equity could do recuring income parent company down,” he said, Tuesday.

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With the plan, the Indonesian government also aims to strengthen competitiveness of the country’s banking sector in the Southeast Asian region as the ASEAN Economic Community (AEC) rolled in earlier this year.

Among the state banks will be involved in the plan are Bank Mandiri, Bank Rakyat Indonesia, Bank Tabungan Negara and Bank Negara Indonesia, said Gatot at the ministry.

On operation, all the lenders will share the automatic teller machine facility, so that it would cut operational cost.

The biggest economy in Southeast Asia expects its economy to expand by up to 5.3 percent this year from that of 4.79 percent this year, requiring bigger roles of banking sector to support the target.

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The Indonesian central bank attempts to impose loosening to help accelerating the growth. (R07/R01)

Mi’raj Islamic News Agency (MINA)