BI Says HSBC Needs Approval to Divests Stake in Bank Ekonomi,

TEMPO.CO, Jakarta - Bank Indonesia had requested that HSBC Holdings Plc asks its permission before divesting the latter's stake in PT Bank Ekonomi Tbk (IDX: BAEK). BI Governor Agus Martowardojo said that a shares release must be done only with the central bank's permission.

"If a bank is planning to do a corporate action then it must seek BI's permission. The central bank will then assess the plan," Agus said in Jakarta, June 3.

Agus explained that potential investors must know that BI will be imposing new rules related to the share ownership of banks. National banks whose shares are owned by local or foreign investors would have to conform to the maximum limit of share ownership.

The maximum limit is set at 40 percent for shareholders from banks and non-bank financial institutions, 30 percent for shareholders from non-legal entities of financial institutions, and 20 percent for individual shareholders.

For shareholders coming from banks' financial institutions, they can have more than 40 percent stake in a commercial bank, but only with BI's approval and supervision.

As reported by Reuters on May 31, HSBC Holdings is considering the option to divest 98.94 percent of its stake in Bank Ekonomi. This statement was delivered by HSBC in response to the request confirmation by the Indonesia Stock Exchange (IDX) following the market speculation.

HSBC bought 88.9 percent stake in Bank Ekonomi from the Wings Group for US$607.5 million in October 2008. In August 2009, HSBC bought another 10 percent stake from the public for $71.6 million.

HSBC President Director Stuart Gulliver said the bank has released its stake in 50 firms because the business units were considered non-profiting.

"Indonesia is one of the 22 countries that become HSBC's business priority," he told Reuters.

MARTHA THERTINA