Banks should employ locals says Indonesian central bank
(16 January 2006 – Indonesia) Indonesia’s central bank has said it will limit the number of foreigners working in middle management in the country’s banks in a bid to ease the problem of unemployment in the country.
Bank Indonesia said unemployment had reached almost 12 million people and that it hoped Indonesian banks controlled by foreign investors would support sustainable national development activities.
However, the bank said exceptions would be made where specialised skills were required that could not be found in Indonesia.
The central bank said foreign banks had played a small role in the intermediary process and were slow to recover their loans following the financial crisis.
"When other banks have started recording growth since mid 2001, the disbursement of foreign bank credits tend to decline and even recorded negative growth in 2002 and 2003," the bank said.
Standard Chartered and OCBC were two foreign banks which boosted their interests in Indonesian Banks in 2005.
However, the bank said exceptions would be made where specialised skills were required that could not be found in Indonesia.
The central bank said foreign banks had played a small role in the intermediary process and were slow to recover their loans following the financial crisis.
"When other banks have started recording growth since mid 2001, the disbursement of foreign bank credits tend to decline and even recorded negative growth in 2002 and 2003," the bank said.
Standard Chartered and OCBC were two foreign banks which boosted their interests in Indonesian Banks in 2005.
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