REPUBLIKA.CO.ID, BATAM -- Bank Indonesia (BI) has recommended four small banks to be acquired by the Riau Island (Kepri) provincial administration to be made a regional development bank (BPD), a legislator said.
Deputy Chairman of Commission XI of the House of Representatives Harry Azhar Azis said here on Wednesday that there were four banks recommended by the central bank.
"But I could not mention the names of the banks," Harry, a lawmaker from Riau Islands, said.
The four banks with assets from Rp200 billion to Rp500 billion need new investors to inject fresh fund," he said.
He said he would push for the establishment of a Kepri BPD and would ask BI for support.
He suggested the Kepri administration acquire one of the bank with assets of Rp400 billion based on its financial capability.
He said if in the first year the provincial administration could put up Rp100 billion and each of the seven regencies provide Rp50 billion, there would more than enough to acquire the bank.
By 2018, the assets could be increased up to Rp1 trillion to meet the minimum level required by the Financial Service Authority, he said.
The plan, however, need a regional regulation that the capital investment would continue under new governor and regents, he said.
Earlier, chairman of the Kepri BPD Study Team Amhar Ismail said a draft regulation on Kepri BPD was being processed to be effective in 2014.
Amhar said the most likely mechanism of establishing a Kepri bank is through acquisition.
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