JAKARTA (Indonesia Today) – Indonesian banks need capital injection of Rp113 trillion (around US$11.8 billion) to support further growth while domestic capital market can only provide up to Rp30 trillion, Kontan business paper reported this morning.
According to a study by National Banking Association (Perbanas), banks owned by regional administrations (BPD) need capital injection next year, while national private banks need that in 2014. State banks, meanwhile, need substantial capital injection in 2015 to maintain their capital adequacy ratio (CAR) above level required by the laws.
Sigit Pramono, chairman of Perbanas, said in order to maintain 10% growth by 2015, banks need capital injection of around Rp113 trillion. Domestic capital market, according to Pramono, could only absorb Rp30 trillion.