Reform in the financial system: Indonesia

Основные данные о работе

Вид работы	Творческая работа
Название дисциплины	Английский язык (профессиональный для направления «Экономика»)
Тема	Reform in the financial system: Indonesia
Фамилия студента	Сарокина
Имя студента	Вероника
Отчество студента	Андреевна

 

 

Содержание

1 Reform in the financial system: Indonesia…………………………………3

Список сокращений…………………………………………………………9

 

Основная часть

1Reform in the financial system: Indonesia

The banking system in Indonesia is dominated by six large state banks.

Central State Bank is "Bank Indonesia is", which has the exclusive right to issue bank notes, is the official holder of state currency reserves, as well as controls and regulates all financial institutions in Indonesia, except for the insurance companies.

Bank Indonesia is" is also responsible for the development and implementation of monetary policy under the authority of economic stabilization, which is headed by the president. On behalf of the government, "Bank Indonesia is" regulate the credit system and the level of bank interest rates. This bank also regulates liquidity, other banks, setting minimum levels of liquidity, as well as minimum requirements for reserve funds, which are deposit banks are required to maintain.

Five state-owned commercial banks mainly cater to the needs of specific sectors of the economy. The largest among them in terms of assets is "Bank Negara Indonesia is 1946", which is associated with the implementation of projects in areas such as manufacturing, agriculture, transportation, and services the development of exports. "Bank Dagang Negara" specializes in the financing of the mining industry, as well as export-oriented industries. "Bank BumiDaya" serves the development of agricultural production, forestry and plantation economy. "Bank Rakyat Indonesia is" provides loans to small farmers and the overall development of rural areas. "Ex-Im Bank Indonesia is" paid by the export-import operations. From September 1969, the government restricted the activities of the country's foreign financial institutions, and over 20 years of new licenses for the establishment of branches of foreign banks had been issued. By early 1989, the country had only 11 functioning branches of foreign banks registered until September 1969, and 63 representative offices of other foreign banks, which was limited to the area of ​​Jakarta (except for banks, which operate on the basis of "joint venture" with local banks).

On 25 March 1989 the Government of Indonesia has opened up the banking sector to foreign capital. At present, there are 70 private national banks, of which about a third is licensed to conduct foreign exchange operations. In Indonesia also function 28 "development bank", 26 of which are wholly or partly administered by the provincial government, as well as one private and one state-owned development bank. Last - "BAPINDO" - is the largest bank in Indonesia this type and specializes in providing medium-and long-term loans for various projects for the development of the national economy and for the purposes of private entrepreneurship.

Most loans are issued for 5 years, even though the bank is authorized to make loans and up to 15 years. In addition, there are three financial institutions providing medium and long term development loans at 10,5-18% APR: Indonesian Financial Development Corporation. Financial Company for the development of the private sector in Indonesia and "PT Bahaa Pembinaan mustache indonesia." The current regulation provides that the public, private and co-operative banks and regional development banks have the right to open their branches throughout Indonesia. Non-bank financial institutions can also open one office in Jakarta, Bandung, Surabaya, Semarang, Medan, Ujung-Pandange and Denpasar. Private and cooperative sector have the right to open a commercial and development banks with a minimum paid-in capital of 10 billion rupees. Outside the provincial capitals and major municipal centers can be created agricultural credit banks in the form of a limited liability company or a cooperative bank with a minimum paid-up capital of 50 million rupees. These banks, which have the ability to open their offices in the same area, provide mainly small loans to small entrepreneurs, rural communities and cooperatives. Small loans to include, in particular, the mini-loans of up to 200 rupees, valid for up to three years for investment purposes, and up to a year to pay for raw materials and labor at 12% per annum. Several larger loans - from 200 to 500 rupees - issued for a term of 5 years at 10.5% and up to 3 years, and 12.0% - in working capital. Finally, another form of credit for small businesses that have already partitioned offices of large state-owned banks are small investment loan, issued in the amount of 10 million rupees for up to 10 years in the four-year grace period, and 10.5% per annum, and the loan for working capital, also issued in the amount of 10 million rupees for a period of three years with a one-year grace period and 12% per annum.

Currently, for Indonesian banks to ease conditions permission to foreign currency: this bank in the past two years should be solvent, and the total value of the property must be at least 100 billion rupees. As for the equity of a foreign bank, it is defined as total liabilities less the value of marketable assets, which includes all funds received from the head office or branches in other countries.

Currently in Indonesia allowed the formation of mixed banks with one or more national banks and one or more foreign banks, which are subject to the following requirements: the presence of a representative office or branch of the bank in Indonesia, the status of "prime bank" in its country of origin. Minimum paid-up capital of the joint bank should be 50 billion rupees, while the share of foreign bank can not exceed 85%. Mixed banks are allowed to open only in the largest cities in Indonesia: Jakarta, Surabaya, Medan, Bandung, Semarang, Ujung-Pandange and Denpasar. One year after the start of operation of such a bank of at least 50% of all loans granted to them should be export credits. It is envisaged that with a foreign partner in a joint capital, as well as the capital of the branch of a foreign bank may not be hedging transactions in the "Bank Indonesia is", ie foreign partners in joint banks can buy foreign currency in exchange for the Indonesian rupiah-purchase in the "Bank Indonesia is." At the same time, if the concerned banks require this type of operation, "swap" can be made in other foreign banks or abroad.

For banks, Indonesia set minimum requirements for the scope of liquidity, which is now reduced from 15 to 2% of the amount of liabilities to third parties. Interbank loan is now virtually unlimited. Foreign exchange banks and non-bank financial institutions can borrow in excess of the earlier limit of 500 thousand U.S. dollars. Now, limits on foreign loans to meet the needs of the continuing solvency of the relevant financial institutions.

Banks and non-bank financial institutions have the right to increase its capital through the issuance of additional shares.

Cooperation within APEC. In Indonesia, is optimistic about the outlook for its participation in APEC, believing that it will make a significant contribution to the fight against the global crisis and the reform of the current global financial and economic architecture. APEC and other such forums as here believe, continue to be the most convenient and politically safe areas for the implementation of the principle of multi-polarity of the world financial system and the abandonment of the practice of imperfect economically dependent on one dominant player in the market. The primary objectives of the APEC summit in 2010, according to Indonesia's political and business leaders, will struggle with the state protectionism, discuss areas of economic integration in the crisis, measures to remove barriers to financial and transport sectors, addressing logistical between the Asian Pacific. Emphasis will be placed on the formation of regulatory and control mechanism that can, in contrast to the present, effectively prevent economic crises like the current one. Appropriateness to the site removal forum previously planned issues on climate change, the environment and corporate ethics question or subject, but they recognized the obvious secondary in the present situation.

Cooperation within ASEAN. In Indonesia, the economic crisis and the slowdown in the national economy the importance attached to the development of 'horizontal' cooperation in various regional organizations. Of particular importance in this context is ASEAN. The primary objectives of the organization, according to Indonesia's political and business leaders are fighting state protectionism within the organization, discuss areas of economic integration in the crisis, measures to remove barriers to financial and transport sectors. The emphasis should be on building regulations and control mechanisms in the Asia Pacific that can effectively prevent economic crises like the current one.

On the prospects of an agreement on free trade between Indonesia and Australia. Most of Indonesian businessmen opposed the negotiations on the preparation of the Agreement on Free Trade Zone (Free Trade Agreement / FTA) between Indonesia and Australia. In their view, such an agreement will only benefit from the Australian side, as some sectors of the Indonesian economy, at present, is at a disadvantage in comparison with Australian competitors. This is primarily due to the higher bank interest on the loan, the insufficient development of the necessary infrastructure and the high cost of logistics.

ASEAN-China FTA. The free trade agreement between ASEAN and China, which came into effect on January 1, 2010, will have a negative impact on Indonesian manufacturers and foreign trade of the Republic as a whole, it is believed representatives of local business and the lower house of Parliament. Representatives of a number of industries (textiles, steel, furniture, cosmetics, aluminum, shoe, cocoa manufacturers, tire manufacturers, medical equipment, electronics, chemical, petrochemical, pharmaceutical, machinery and spare parts for cars) in 2009, have repeatedly expressed unwillingness compete with cheap goods made in China and asked to postpone the entry into force of this Agreement. In their view, the agreement could lead to de-industrialization in the country and decrease the share of manufacturing in GDP, which, according to the Chamber of Representatives of Indonesia, and so has been steadily declining since 2005. In addition, this Agreement may have social consequences: state insurance company "PT Jamsostek" warned that it will lead to layoffs, as a large number of local companies will be unable to compete with Chinese manufacturers, whose cheap goods flood the Indonesian market.

 

Список сокращений

 

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