We have invited foreign investors, but when they are here we make it difficult for them."Jakarta (ANTARA News) - Chairman of the Association of Indonesian Bankers (Perbanas) Sigit Pramono described foreign investment in small banks as an "offer you can`t refuse."
Small banks would not turn down financial support that would keep them afloat, Sigit said here on Friday, adding "involvement of foreign investors is unavoidable."
However the regulation banning foreign investors from buying more than 40 percent of a bank shares would make it less interesting for foreign investors in venturing in Indonesian banks, he said.
Foreign investors generally want to have a controlling stake of at least 51 percent, he said.
Earlier, Vice President Boediono said problem being short in capital needs addressing ahead of the implementation financial integration under the ASEAN Economic Community (MEA).
Boediono said without strong capital, the banking sector could not contribute much to the economic development.
Chairman of the Commission XI of the House of Representatives Emir Moeis said foreign capital is needed to strengthen Indonesian banking industry before the implementation of MEA.
Emir said the central bank should not be too restrictive in its policy in the banking ownership.
"We have invited foreign investors, but when they are here we make it difficult for them," he said.
(Uu.H-ASG/F001)
Editor: Priyambodo RH
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