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OJK Pushes Financial Sector to Expand

15 September 2014 15:28 WIB

TEMPO.CO, Jakarta - The Financial Services Authority (OJK) urged domestic financial institutions to expand their business to Southeast Asia, particularly Cambodia, Lao PDR, Myanmar and Vietnam.

Chief Commissioner of OJK Muliaman D. Hadad, said that domestic financial services sector should be used to build momentum in welcoming the ASEAN Economic Community (AEC), which will be establish in 2015. "Players in the domestic financial services industry were too domestic-oriented in the past few years," Muliaman said last week.

Muliaman said that domestic financial institutions attempt to penetrate the ASEAN market was not as strong as other financial institutions from neighboring countries, such as Singapore and Malaysia. He said that changes must be made if Indonesia wishes to stay in the game. "We need to learn from the other industries that have managed to enter the [ASEAN] regional market, such as PT. Semen Indonesia in Vietnam," he said.

Muliaman hoped that Indonesia could have a bilateral relationship with Cambodia, Lao PDR, Myanmar and Vietnam in the financial sector for the upcoming AEC. Although the integration of financial sectors in ASEAN will begin in 2020, the AEC momentum can be used to hold bilateral talks.

DINI PRAMITA | AMOS SIMANUNGKALIT



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