REPUBLIKA.CO.ID, JAKARTA -- Financial Services Authority (OJK) sees that three state-owned banks, PT Bank Mandiri, PT Bank Rakyat Indonesia (BRI) and PT Bank Negara Indonesia (BNI), are potential to enter Malaysia. Indonesian banks can enter Malaysia under the agreement between Bank Indonesia (BI), OJK and Bank Negara Malaysia (BNM) signed on December 31, 2014.
The agreement emphasized equal reciprocity among the two countries. It is a part of ASEAN Banking Integration Framework (ABIF) set for 10 ASEAN member countries, which are Brunei Darussalam, Indonesia, Laos, Cambodia, Malaysia, Myanmar, Singapore, Vietnam, Thailand, and Philippines.
OJK Commissioner on Banking Supervision, Nelson Tampubolon, said that the bilateral agreement allowed Indonesian three banks to enter Malaysia if Indonesia allowed three Malaysian banks to enter Indonesia. At present, three Malaysia banks are operating in Indonesia. They are CIMB Niaga, BII Maybank and Maybank Syariah.
"Before we enter Malaysia, they cannot add more banks to Indonesia," Tampubolon said recently. The only Indonesian bank operates in Malaysia is Bank Mandiri. However, the bank is unable to operate a full branch due to capital requirements.
He said that Indonesian banks must strengthen their capital to compete with other countries. Without a good capital, Indonesia will only become a spectator.
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