Indonesia's Growing Economic Nationalism

Singapore-based DBS Holdings Group announced in April it would pay US$7.2 billion to take over Bank Danamon, Indonesia’s sixth-biggest bank. Only three weeks later Bank Indonesia, the country’s central bank, announced that it would issue new rules limiting international ownership in local banks, putting the Danamon takeover on hold – until after the new ownership rules are promulgated and Singapore agrees to reciprocal arrangements for lenders operating in the two countries. No one is certain when that will be. That has dismayed at least three other foreign banks that had plans to acquire Indonesian institutions.

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