Boediono: "BI divestment sooner the better"
According to the Bank Indonesia Governor, there is no reason for the Indonesian central bank to intentionally delay divesting from its subsidiaries as mandated by Law No. 3 of 2004 on Bank Indonesia. The transitional period within which the central bank is required to divest from its subsidiaries stipulated in the Law will expire this year.
He said, “We are going to speed things up. We are not trying to delay this thing deliberately. In fact, the sooner the better.”
According to Boediono, the central bank and government authorities are currently working to determine the best procedures to carry out the divestment process. He promised that the divestment will take place this year.
As of end of 2007, Bank Indonesia owned 55% of PT Jaminan Kredit Indonesia, a government-owned credit underwriter focusing on small businesses and cooperatives. Their ownership was further diluted to 22% following the government’s initiative to inject Rp1 trillion to the company to expand credit to small businesses. The central bank also owns 82.22% of PT Bahana Pembinaan Usaha Indonesia, a government-owned financing company also focusing on small businesses and cooperatives. In addition, it also partly owns the Indover Bank, which was recently declared bankrupt by a Dutch court decision due to lackluster performance amid a growing crisis.
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