ANNOUNCEMENT 13 Jul 2012In July 2012, the government of Indonesia announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
Official Bank of Indonesia regulation 14/8/PBI/2012 (in Bahasa Indonesia):
On 13 July 2012, the Bank of Indonesia issued regulation 14/8/PBI/2012 regulating share ownership of commercial banks.
The new provisions introduce foreign ownership caps on banks of 40% (art. 2(2)a of the regulation), unless a number of conditions are met. These include getting a special approval from the Bank of Indonesia, the bank having to offer at least 20% of its ownership to the public within 5 years after the takeover amongst other conditions.
Furthermore, article 5(2) of the regulation requires foreigner or foreign companies to:
The regulation came into force on the day of its issuance.