Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Finance  >>   Indonesian banks need to step it up
NEWS UPDATES Asean Affairs        4  June 2011

Indonesian banks need to step it up

Related Stories

May 27, 2011
Indonesia eyes new rules for overseas banks

March 31, 2011
Indonesian banks face difficult year

March 2, 2011
Bank Indonesia’s loan push may spark defaults

February 14, 2011
Indonesia's Islamic bank assets to jump

February 7, 2011
Indonesian banks climb in global rankings

January 25, 2011
Indonesia's Bank Mandiri to raise $1.3 Billion

January 24, 2011
Indo banks should earn less

The nation's commercial banks need to improve their services and boost capital if they want to play a bigger role in the region, Bank Indonesia deputy governor Muliaman Hadad said.

"They need more capital. Without that, it will be difficult. [Lenders's] business expansion is determined by the power of capital," Muliaman said at Investor Magazine's awards ceremony this week.

Indonesian banks are likely among the most profitable in Southeast Asia, Muliaman said, but they lag behind regional rivals in terms of size and the services they offer. State-owned Bank Mandiri, the nation's biggest lender by assets, came in ninth in Investor Magazine's list of Southeast Asia's top 10 lenders last year.

However, Mandiri - whose total assets were Rp 449.8 trillion (US$52.6 billion) last year - came in well behind Thailand's second-largest bank, Krung Thai Bank, which had $61.57 billion in assets. Singapore's DBS Group was the regional leader with $230 billion in assets. Mandiri was the only Indonesian entry on a list dominated by lenders from Singapore, Malaysia and Thailand.

Muliaman said customers now demand better technology that allows them to take greater control of their money without banking's old restrictions.

"In the next five to 10 years, banks' business will be determined by how we can understand the behavior of our consumers and how technology and information can help strengthen banks' business," he said.

He also said lender must offer Internet services that allow customers to bank anywhere at any time.

Fauzi Ichsan, an economist at Standard Chartered Bank, said Indonesian banks may play a big role in the region even if they only focus on the domestic market as it remains underleveraged.

"Look at China. The world's biggest banks are there and their lending to GDP ratio is around 120 percent. Indonesia's ratio, on the other hand, is only 29 percent," Fauzi said.

He also said Indonesia banks should improve themselves to compete with foreign lenders.

"Apart from the capital and services that need to improve, Indonesian banks need international-level bankers if they want to expand to other countries," he said. "It's more urgent for foreign banks to expand in Indonesia than our banks to expand there."

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    4  June  2011 Subsribe Now !
• Cambodia fails on free speech Subcribe: Asean Affairs Global Magazine
• Yudhoyono proposes renegotiation with foreign companies Asean Affairs Premium
• Indonesian banks need to step it up
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Najib: Asian countries shouldn't choose    
• Malaysia scouts Japanese SMEs

 • Aquino to revamp Customs

 • Thai wages increases examined

• Saha plans for the AEC

Asean Analysis    June  2011

Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events

Asean Stock Watch    June  2011 

• Asean Stock Watch-June 3 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand