REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia (BI) finally permitted DBS Singapore to acquire 40 percent shares of PT Bank Danamon Indonesia. Governor of BI Darmin Nasution said based on BI regulation,  individuals could have a maximum 20 percent of shares in a commercial bank, while the financial institution 40 percent.

"BI will approve the acquisition proposal if Monetary Authority of Singapore (MAS) provided discretion to three banks of Indonesia, BNI, BRI and Bank Mandiri to enter Singapore," Nasution said recently. 

The Indonesian central bank also considers to implement reciprocity principle and effectiveness of cross border. 

MAS welcomed the BI decision over DBS's proposal. "We seek good cooperation between Singapore and Indonesia, MAS and BI can explore deeper access to their respective markets. MAS will allow a certain degree of flexibility for Indonesian banks to provide financial services such as corporate loans and retail in Singapore," said a spokesman of MAS in its official website on Wednesday.

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