As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Click to email CW8888 or Email ID :

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down

Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday, 29 April 2012

Indonesia delays S$9.1b DBS-Danamon deal

JAKARTA: Indonesia's central bank said on Saturday it would not approve a S$9.1 billion (US$7.3 billion) acquisition of Bank Danamon Indonesia by Singapore's DBS until new rules covering foreign ownership were in place.

Bank Indonesia said it would re-evaluate a current rule that allows private investors -- both foreign and Indonesian -- to own stakes as high as 99 percent in Indonesian banks before assessing DBS's planned acquisition.

"It's not that we're delaying approval for the DBS deal, we will just start evaluating DBS's plan after we issue our new bank ownership rules," Bank Indonesia spokesman Difi A. Johansyah told AFP.

"Hopefully, the regulation will be issued by the end of May or early June."

He said the new rules will apply equally to local and foreign investors, saying the regulation was for the "sake of prudence" and was not aimed at blocking foreigners.

Johansyah declined to say how the 99 percent ownership cap would be affected, but said financial institutions "with a proven track record" will be able to own "a majority".

"Non-financial institutions will only be able to own a minority stake," he added.

The new rules will also oblige banks to acquire several new licences for different services such as taking deposits, setting up ATMs and opening branches, the Jakarta Globe daily quoted Bank Indonesia Governor Darmin Nasution as saying.

The DBS-Danamon deal announced earlier this month triggered a rash of nationalistic complaints by politicians and banking executives that the 99 percent allowance for foreign ownership was too high.

The backlash echoes nationalistic comments made recently over the country's mining industry, which prompted parliament in February to strip foreigners of a controlling stake in mining assets after 10 years of production.

Danamon is already controlled by a subsidiary of Singapore's investment firm Temasek Holdings' Fullerton Financial Holdings but the deal would still require the approval of Indonesia's central bank.

- AFP/al

No comments:

Post a comment

Related Posts with Thumbnails