Based on the latest news from Reuters, the Indonesia government will finalize a plan this coming May to put four state banks under a holding company, PT Danareksa, a government-owned financial company. The four state banks were Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI) and Bank Tabungan Negara (BTN). Questions therefore arise to many companies in Indonesia in relation to this matter on what are the effects of the mega bank shake-up on the companies in Indonesia.
In this article, you will be provided with the information of what will happen with the upcoming mega bank shake-up in Indonesia on May 2019.
Purpose of the Mega Bank Shake-up
Prior to knowing what the impacts of the mega bank shake-up are on companies in Indonesia, it is crucial that we understand the whole purpose of the shake-up which is going to be taken place in May 2019.
In this coming May, the whole purpose of why the Indonesian government plans to put four of the state banks under PT Danareksa was to support the government’s development agenda, which includes encouraging infrastructure and lending for homes.
Besides that, in accordance to the Deputy Minister of State-Owned Enterprises, Gatot Trihargo, he states that the holding company, PT Danareksa will help by relocating capital amongst the leaders, either from fund findings or dividend payments. This is because he states that the government expects this holding company to be able to raise funds more successfully and also to be able to improve its competitiveness against other private owned banks in Indonesia.