(MENAFNEditorial)
KUALA LUMPUR February 9 2015 – Malaysian Government is committed to facilitate the licensing for the opening of Indonesian banking branch offices.
So far Indonesian banking is having trouble in opening branch offices in Malaysia due to licensing problem. Meanwhile banks from Malaysia can easily operate new offices in Jakarta.
Coordinating Minister for Economy Affairs Sofyan Djalil said President Joko Widodo expressed this matter personally to the Prime Minister of Malaysia Datuk Seri Najib Razak during the bilateral meeting in Malaysia.
“It seems that they responded to it very quickly. I heard there are follow-up discussions up to technical level so the matter can be addressed immediately” said Sofyan in Kuala Lumpur Saturday (2/7).
In the near future he said Bank Central Malaysia will sign a memorandum of understanding (MoU) with Financial Services Authority (OJK) related to the branch office licensing. However Sofyan was unwilling to provide further information about this MoU.
This agreement becomes the main attention of the President in order to expand national company in line with the implementation of Asean Economic Community (AEC).
Malaysian banks operating in Indonesia for example Malaysian Banking Bhd (Maybank) and CIMB Group Holdings Bhd have not experienced difficulty in licensing.
Sofyan positively welcomed the response from the Malaysian Government to facilitate Indonesian state-owned banks to expand its business to Malaysia.
This cooperation between Indonesia & Malaysia has been actualized into a bilateral agreement signed by Bank Indonesia Bank Negara Malaysia and the OJK in Jakarta at the end of last year.
It is a follow-up from the signing of Asean Banking Integration Frameworks (ABIF) which has been agreed by 10 ASEAN countries.
Thus bank that wants to expand its business to Malaysia will be treated as local bank. The next phase is preparing local banks that want to conduct the business expansion. Read more...
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