OJK Asks Myanmar to Open Market to Indonesian Banks

Jakarta. Indonesia’s Financial Service Authority (OJK) has requested the Myanmar banking authority to open its market to Indonesian lenders, a director at the OJK said on Thursday.
Triyono, director for international affairs, said the authority aims to help state lender Bank Negara Indonesia secure permits to expand its representative office in the country to offer full branch services.
Myanmar’s liberalization is seen by many as offering huge opportunities to foreign investors and business and many from Indonesia are racing to tap in to the market.
“Should the Myanmar authority approve our request, the memorandum of understanding can likely be signed early next year,” said Triyono.
Myanmar’s regulations require a foreign lender to open a representative office before it can acquire permits for full branch offices for various banking services.
Rico Rizal Budidarmo, finance director of BNI, said that in the first phase of its operations in Myanmar the bank would utilize the planned representative office for marketing activities.
“Because [the permit] is for now just for a representative office, we don’t plan to spend much, it will probably just be some operating expenses like leasing an office tower,” said Rico.
BNI is one a of a number of state-owned firms in Indonesia investigating prospects in the country, including construction company Wijaya Karya and Telekomunikasi Indonesia (Telkom).
Investor Daily