BI Not to Put Back Minimum Bank Capitalization Deadline
Wednesday, 24 January, 2007 | 12:26 WIB

TEMPO Interactive, Jakarta: Bank Indonesia (BI) will not put back the deadline for meeting the banking minimum capitalization of Rp80 billion.

National banks must still be able to fulfill this provision by the end of the year, although the government has refused to grant tax incentives for banking mergers.

“I think there are already many incentives, especially from Bank Indonesia,” said Muliaman D. Hadad, a BI Deputy Governor, yesterday (01/23) in Jakarta.

According to him, the central bank has already granted several incentives for banks that do merge: BI will make it easier for merged banks to open branches and will pay merging banks' due diligence costs up to a maximum of Rp1 billion.

“I feel that this is enough,” said Muliaman.

Agoeng Wijaya