Foreign Investors Control 49 Percent Of Indonesian Banks: Legislator

Makassar, S Sulawesi (Antara Bali) - A leading lawmaker calls for the revision of the country's banking law which has failed to strengthen the country's banking industry.

Deputy chairman of the Commission XI of the Parliament Gus Irawan Pasaribu said foreign investors own 49 percent of banks in Indonesia.

"Therefore we have come  with an initiative to revise the country's banking law , which clearly hurts our interest," Gus Irawan said here on Monday.

He said the banking law is not relevant to the fact, adding the law allows foreign investor almost without limit to control the country's banking sector.  "Our law allows foreign investors to own up to 49 percent of a bank," he said.  
He said under the present condition, Indonesian banks are not ready to step into a free trade era after the implementation of  ASEAN Economic Community (AEC) by the end of 2015.

He said it is not easy to revise the banking law but "we have to improve efficiency and competitiveness."  He said in addition to revision of the banking law, he also called for change in the supervision system, which has been taken over by the Financial Service Authority (OJK) from Bank Indonesia. (WDY)