Indonesia’s financial sector gets a boost from ADB
(27 September 2012 – Indonesia) The Asian Development Bank (ADB) is giving Indonesia’s financial sector a US$300 million (A$289 million) loan to improve operations of the local regulator, deepen capital markets and expand non-bank financing.
The Manila-based lender said the loan would be offered to the government’s Financial Market Development and Integration (FMDI) Program, which will include supporting the integration of the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) into the integrated Financial Services Supervisory Authority (OJK).
ADB documents say the FMDI program involved efforts to improve transparency at Bapepam-LK through the adoption of international accounting and financial reporting standards.
The FMDI program aims to promote a greater participation in retirement planning and grow Islamic-compliant insurance products.
"This program targets an increase in non-bank finance sub-sector assets to 65 percent of gross domestic product by 2014 from 60 percent in 2010 and aims to increase the level of domestic ownership of tradable government securities to 73 percent by 2012 from 70 percent in 2010," the ADB said.
ADB documents say the FMDI program involved efforts to improve transparency at Bapepam-LK through the adoption of international accounting and financial reporting standards.
The FMDI program aims to promote a greater participation in retirement planning and grow Islamic-compliant insurance products.
"This program targets an increase in non-bank finance sub-sector assets to 65 percent of gross domestic product by 2014 from 60 percent in 2010 and aims to increase the level of domestic ownership of tradable government securities to 73 percent by 2012 from 70 percent in 2010," the ADB said.
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