BI: PLAN TO LIMIT FOREIGN OWNERSHIP STILL UNDER DISCUSSION

Jakarta, Dec 11 (ANTARA) - Bank Indonesia acting governor Darmin Nasution said that the plan to limit foreign ownership in national banks was still under discussion.

"Until now it is still under discussion," he said to newsmen after conducting Friday prayers.

He said one of the reasons for limiting foreign ownership was because the majority of national banks were now owned by foreign parties.

He said the central bank was now also discussing the Rp100 billion minimum capital requirement for banks that would be applied in 2010 based on the Indonesia Banking Architecture.

He said the capital requirement would also encourage foreign investors to keep acquiring banks in the country because the local owners would not be able to meet it because they had not more funds for it.

The incapacity would invite investors including foreign investors to come, he said.

"Now it is not necessary to force fulfillment of minimum capital requirement. What is important is soundness and good capital adequacy ratio although the banks are small," he said.

Darmin said right now Bank Indonesia was seeking a revision of the capital requirement regulation.

He said Bank Indonesia would not force the fulfillment of the requirement. "We will revise it. What is important now is not capital but soundness," he said.