JAKARTA (Yosefardi) – The Financial Service Authority (OJK) urges the banks with core capital of less than Rp1 trillion (BUKU 1 category) to merge, instead of to launch the initial public offering (IPO).
Currently some local banks plan to merge as foreign investors plan to invest in. The government requires foreign invesotors support the consolidation of local banks through merger mechanism.
OJK then expects the local banks would cut to 115 banks by 2017 from current 118 banks.
Some 45 banks have core capital of less than Rp1 trillion (BUKU 1 category), 48 bank (BUKU 2) with capitakl of Rp1-5 trillion), 21 banks (BUKU 3) with capital of Rp5-30 trillion), and 4 banks (BUKU 4) with capital of more than Rp30 trillion.