Below is a list with tagged columns and company profiles.

Today's Headlines OJK

  • OJK to Approve Foreign Majority Stake in Bank Danamon Indonesia?

    OJK to Approve Foreign Majority Stake in Bank Danamon Indonesia?

    Indonesia's Financial Services Authority (OJK), the government agency that regulates and supervises the country's financial services sector, may allow the plan of Japan-based Mitsubishi UFJ Financial Group (MUFG) to acquire a 73.8 percent stake in Indonesian financial institution Bank Danamon Indonesia through subsidiary The Bank of Tokyo Mitsubishi UFJ Ltd (BTMU).

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  • Mixed Opinions about Indonesia's Credit Growth in 2018

    Mixed Opinions about Indonesia's Credit Growth in 2018

    Indonesia's central bank (Bank Indonesia) is optimistic that credit growth will accelerate in Indonesia in 2018. The lender of last resort set its credit growth forecast for 2018 at the range of 12-14 percent year-on-year (y/y), up from its 10-12 percent (y/y) growth forecast for 2017, on the back of accelerating economic growth. The Indonesian government proposes economic growth at 5.4 percent (y/y) in 2018 (possibly a too ambitious target).

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  • Be Aware of Illegal Investment Offers & Online Scams in Indonesia

    Be Aware of Illegal Investment Offers & Online Scams in Indonesia

    Indonesia's Financial Services Authority (OJK) warns domestic and foreign investors about the presence of unclear, sometimes even illegal, online platforms or companies that offer lucrative investment opportunities. In the first two months of 2017 the OJK already forced the closure of 19 illegal platforms and companies as they were considered harmful for the consumer or investor. Several of these 19 obscure entities do not even have a clear address.

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  • Royal Bank of Scotland NV Ends Business Activities in Indonesia

    Royal Bank of Scotland NV Ends Business Activities in Indonesia

    Indonesia's state news agency Antara reported that the Financial Services Authority (OJK), the government agency that regulates and supervises the financial services sector, revoked the license of the local unit of the Royal Bank of Scotland NV (RBS NV), hence effectively ending the company's business in Indonesia. The revocation was conducted on request of the lender's headquarters in the Netherlands. This request was sent on 1 November 2016. The bank had a long history in Indonesia. RBS NV started operations in 1969 in Southeast Asia's largest economy under the name ABN AMRO BANK NV Indonesia.

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  • Thailand's Kasikornbank Interested to Acquire Bank in Indonesia

    Thailand's Kasikornbank Interested to Acquire Bank in Indonesia

    Kasikornbank, the fourth-largest bank in Thailand, expressed its intention to acquire a bank in Indonesia. However, in line with the content of the ASEAN Banking Integration Framework, this plan cannot be carried out rapidly. Meanwhile, Indonesia's Financial Services Authority (OJK), which regulates and supervises the financial services sectors in Indonesia, only allows a foreign investor to acquire a majority-stake in small Indonesian banks (categorized under the BUKU 1 system) provided the foreign investor purchases two (small) banks and merge these into one entity.

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  • Indonesia Stock Exchange: Minimum Free Float & Shareholder Rules

    Indonesia Stock Exchange: Minimum Free Float & Shareholder Rules

    The Indonesia Stock Exchange (IDX) requests 28 companies that are listed on the IDX to comply with the minimum free float and shareholder requirements that are stipulated by BEI No. Kep-00001/BEI/01-2014. Initially, the IDX provided time until 31 January 2016 for publicly-listed companies to comply with new rules. However, currently there are still 28 companies that fail to meet the new requirements (but which forms an improvement from the year-start when 90 companies still had to comply with new regulations).

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  • OJK: Pace of Credit Growth in Indonesia Remains Weak

    OJK: Pace of Credit Growth in Indonesia Remains Weak

    The Financial Services Authority (OJK), the Indonesian government agency that regulates and supervises the country's financial services sector, expects credit growth in Indonesia to expand by a bleak 6 - 7 percent (y/y) in 2016, far below the initial growth forecast of 12 - 14 percent (y/y). OJK Chairman Muliaman D. Hadad said credit growth is slowing in Indonesia amid sluggish global and domestic economic growth as well as the strategy of companies to settle debts rather than seek credit for business expansion, while individual credit demand remains bleak as well.

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  • Banking Sector Indonesia: NIM and Credit Quality Improve

    Banking Sector Indonesia: NIM and Credit Quality Improve

    The net interest margin (NIM) of Indonesian banks rose while the nation's credit growth slowed and economic growth remained 'bleakish'. In June 2016 the average NIM of Indonesian banks was recorded at 5.59 percent compared to 5.32 percent in the same month one year earlier. The higher NIM is the result of improved credit quality, reflected by a lower non performing loan (NPL) ratio. NIM is the difference between interest income generated by banks and the amount of interest paid out by banks to the lenders. A higher NIM implies that the bank is more profitable.

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  • Initial Public Offering (IPO) Indonesia: Made Easier to Go Public

    Initial Public Offering (IPO) Indonesia: Made Easier to Go Public

    The Indonesia Stock Exchange (IDX) and the Financial Services Authority (OJK) aim to boost the number of listed companies in Indonesia by making it easier for companies to go public in an initial public offering (IPO). One strategy is the setting up of "Go Public" information centers in Jakarta and other big cities in Indonesia. This would mean that company officials will not need to travel to Jakarta to collect documents and provide data to the IDX. Soon, this will be possible in the regional centers. These centers can also introduce underwriters to companies that are interested to go public.

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Latest Columns OJK

  • Rapid Development of Fintech Industry in Indonesia

    Rapid Development of Fintech Industry in Indonesia

    Rapid development of financial technology (fintech), which involves the delivery of financial services that use the latest technology and innovation to compete with the world's traditional financial methods, is also visible in Indonesia.

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  • OJK Changes Regulation for Foreign Workers in the Banking Sector

    OJK Changes Regulation for Foreign Workers in the Banking Sector

    Indonesia’s financial authority, the OJK, has recently issued regulation no. 37/POJK.03/2017 on the Employment of Foreign Workers and Knowledge Transfer within the Banking Sector (New Regulation). The New Regulation replaces Bank Indonesia regulation number No. 9/8/PBI/2007 on the Employment of Foreign Workers and the transfer of knowledge program Within the Banking Sector. In this column we discuss the available job titles for foreign workers, the application requirements and the transfer of knowledge program.

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  • Low National Savings: People of Indonesia Fail to Save Incomes

    Low National Savings: People of Indonesia Fail to Save Incomes

    Indonesia's gross national savings per gross domestic product (GDP) remained stagnant according to a statement from the nation's Financial Services Authority (OJK) earlier this week. This indicates that Indonesian residents do not manage to save money, but rather focus on consumption. Based on data from the International Monetary Fund (IMF), Indonesia's gross national savings per GDP stood at 30.87 percent in 2015. For comparison, figures of Singapore and China stood at 46.73 percent and 48.87 percent, respectively.

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  • Banking Sector Indonesia: OJK Needs More People to Combat Fraud

    Banking Sector Indonesia: OJK Needs More People to Combat Fraud

    Indonesia's Financial Services Authority (OJK), the central government's agency that regulates and supervises Indonesia's financial services sector, needs to hire hundreds of new staff in order to safeguard monitoring of the nation's banking sector and to enhance its early warning system in order to detect possible corruption cases. As up to 350 OJK workers are expected to return to the central bank per 1 January 2017, good monitoring of the banking sector is in jeopardy.

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  • Indonesia's Conventional Banks to Spin Off Islamic Units by 2024

    Indonesia's Conventional Banks to Spin Off Islamic Units by 2024

    Indonesia's Financial Services Authority (OJK), the government agency that regulates and supervises the nation's financial services sector, is preparing a new regulation that requires conventional financial institutions in Indonesia to spin off their Islamic financial units before 17 October 2024. Islamic finance or Islamic banking is a type of banking that is in accordance to the principles of sharia (Islamic law). Based on the regulation, those financial institutions that generate at least 50 percent of their capital through Islamic finance have to comply with the new rule.

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  • How Can a Foreigner (Expat) Open a Foreign Currency Bank Account in Indonesia?

    How Can a Foreigner (Expat) Open a Foreign Currency Bank Account in Indonesia?

    Indonesia’s Financial Services Authority (OJK) issued a new regulation that simplifies the opening of a foreign currency bank account by a foreign national (expat). A circular, S-246/S.01/2015 (dated 15 September 2015 and signed by OJK Chairman Muliaman D. Hadad), has been sent to all directors of Indonesian commercial banks that conduct business in foreign currencies. This new rule, part of the economic policy package that was released by the Indonesian government on 9 September, aims to boost foreign currency funds in Indonesia and support the rupiah.

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  • Banking in Foreign Currencies for Expats in Indonesia Made Easier

    Banking in Foreign Currencies for Expats in Indonesia Made Easier

    Soon it will be easier for foreigners (expats) to have a foreign currency bank account (non-rupiah) in Indonesia. Muliaman D. Hadad, Chairman of the Financial Services Authority (OJK), stated it is bound to issue a new regulation that allows for easier banking in foreign currencies in Indonesia. This regulation is made in an effort to raise the country’s foreign exchange reserves and support the ailing rupiah.

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  • Market Update: Why Indonesian Stocks & Rupiah Strengthen on Friday?

    Market Update: Why Indonesian Stocks & Rupiah Strengthen on Friday?

    After a real roller coaster ride, Indonesia’s benchmark stock index (Jakarta Composite Index) climbed 0.35 percent to 4,446.20 points at the end of the trading week. The majority of key stock indices across the globe tended to strengthen on Friday after a week characterized by severe volatility amid concern about the economic situation in China.

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  • Islamic Banking in Indonesia Explained: New Rules & Foreign Ownership

    Islamic Banking in Indonesia Explained: New Rules & Foreign Ownership

    Indonesian financial authorities are considering to ease foreign ownership limits for local Islamic banks and to promote new sharia-compliant financial tools in an effort to make the Islamic finance industry more attractive to foreign investors and the Indonesian population. Despite having the world’s largest Muslim population and being a dynamic emerging economy, Indonesia plays only a very minor role in the global Islamic banking industry. Meanwhile, domestically, Islamic banking still seriously lags behind conventional banking.

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  • Islamic Banking in Indonesia: Boosting Syariah Finance

    Syariah banking or Islamic finance is a large untapped potential in Indonesia, a country where about 13 percent of the total global Muslim population live. With nearly 90 percent of the 250 million people in Indonesia adhering to Islam, the market share of syariah (sharia) finance is remarkably low. At USD $24 billion, Islamic banks in Indonesia only held 4.9 percent of the country’s total banking assets in 2013, hence making Indonesia’s Financial Services Authority (OJK) decide to launch a five-year roadmap in a move to boost syariah banking.

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