Banking Liberalization : An Indonesian Experience Presented in the symposium of the Assessment of Trade in Services held by WTO Secretariat Geneva, March 2002 AGENDA I. INTRODUCTION II. BANKING REFORMS & LIBERALIZATION
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An Indonesian Experience
Presented in the symposium of the Assessment of Trade in Services held by WTO Secretariat
Geneva, March 2002
MULTILATERAL AGREEMENTS (WTO, APEC, ASEAN)
Liberalization process in banking sector :
SERIES OF FINANCIAL AND BANKING DEREGULATION PACKAGE
1. June 1983 policy package :
2. October 1988 policy package
3. The March 25, 1989 policy package
4. The February 28, 1991 policy package
This package sets forth :
5. The May 29, 1993 policy package
This package covers prudential measures that should be fulfilled by bank i.e. Capital Adequacy Ratio, regulation concerning allowance for earning assets losses and provision on legal lending limit.
1. The enactment of new Banking Act No. 7 of 1992 to replace Banking Act No. 14 of 1967.
2. The main distinction
3.The enactment of the ownership of banks on Banking Act No. 7 of 1992
The Bank Reform Program
The Strategic Measures
A New Banking Act No. 10 of 1998 and Its Implementation Regulations
1. Relaxation of foreign participation in the establishment of new banks.
2. Relaxation of foreign participation in existing banks
Foreign investors may also participate in existing banks through :
3. Opening of foreign bank branches.
*) Position of March
**) Position of December
In the year 2001 : 1 U$ is equivalent with Rp. 10.000,-
Source : Bank Indonesia
1. Indonesia has made a moderate commitments in the international fora.
2. The process of liberalization should be properly managed and overseen in order to secure domestic interest and to avoid unnecessary negative impact of liberalization process.
3. The assessment of trade in services :
4. The treatment of autonomous liberalization :
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