JAKARTA (TheInsiderStories) – Indonesia Financial Services Authority (OJK) and Bank Negara Malaysia (BNM) signed a bilateral agreement on Asosciation of Southeast Naition (ASEAN) Banking Integration Framework (ABIF) implementation to allows the country’s bank enter financial market on the both countries.
The bilateral agreement signed by the chairman of the board of commissioners of OJK Muliaman Hadad and BNM’s Governor Datuk Muhammad bin Ibrahim witnessed by President Joko Widodo and Malaysian Prime Minister Najib Razak on the sidelines Annual Consultation Meeting Indonesia and Malaysia XI at the Merdeka Palace.
On the occasion of receiving the visit of Prime Minister Najib, also the signing of two cooperation documents between the Government of the Republic of Indonesia (RI) with the Government of Malaysia. Both documents were signed during the meeting, namely:
This bilateral agreement aimed at reducing inequalities in access to markets and banking activities between the two countries through the presence of banks that meet certain requirements or Qualified ASEAN Banks in their respective jurisdictions based on the principle of reciprocity is balanced.
Previously, OJK has signed Letter of Intent (LoI) with the Bank of Thailand (BOT) as a preparation of ABIF. The signing of the LoI made by the Chairman of the Board of Commissioners of OJK MuliamanHadad and BOT Governor Veerathai Santiprabhob in Bangkok, Thailand on March 31.
Deputy Commissioner of Banking Sector Mulia Siregar told reporters on August 1, beside with Malaysia, OJK expects to sign the same agreement with Thailand, Singapore, and Philippines (ASEAN-5) in this year.
According to him, three state-owned banks, PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Rakyat Indonesia Tbk (IDX: BBRI) and PT Bank Negara Indonesia Tbk (IDX: BBNI) are planning to enter Malaysia and considering to expanding to other ASEAN countries.
While, BNM has approves CIMB and Maybank as a QAB bank from Malaysia and soon will followed by RHB Banking Group.
Triyono, an Advisor of International Relations for OJK said, both parties has agreed to allows three Indonesian banks to open their subsidiaries office in Malaysia and treat them as a local bank.
“Indonesian bank will be treated as a local bank. They will has a flexibility to open a bank, no restrictions on the number of branches and ATMs, fare in a competitive for ATM, will become members of the deposit insurance in Malaysia with half rates RM5.2 million from regularly RM10.4 million, annual subscription also half price to RM44,000,” He said.
President Widodo received PM Malaysia visit
On Monday, President Joko Widodo received the visit of the Prime Minister of Malaysia, Dato ‘Sri Mohammad Najib Tun Abdul Razak, at the State Palace. This meeting is intended to discuss The 11th Indonesia - Malaysia Consultation Meeting.
“Indonesia and Malaysia are two neighbors who had long very well and it relates to, among others, can be seen from the figures on trade, investment and tourism between the two countries. The annual consultation meeting of all 11 this is a good opportunity to discuss priority issues we need to improve, “said President Jokowi told reporters in a joint press statement of Prime Minister of Malaysia.
Widodo said during the meeting, Indonesia delivered three main issues, namely: the first regarding the delimitation of the territory. “We agreed to intensify the negotiations and meetings,” the president said.
Secondly, security cooperation in Sulu and the surrounding waters. Indonesia expressed concern about the case of kidnapping of hostages in the region, and encourages the trilateral cooperation between Malaysia, the Philippines, and Indonesia to the security of Sulu and the surrounding waters can be done immediately.
The third, continued the President, with regard to cooperation protection of Indonesian citizens. “We emphasize the importance of working together to protect Indonesian workers in Malaysia,” explained President Jokowi.
On that occasion the President Jokowi also gives a deep appreciation for the participation of Najib at the World Islamic Economic Forum 12 that was held at the Jakarta on August 2 to 4.
After attending The 11th Indonesia - Malaysia Consultation Meeting, Malasia PM is scheduled to be one of the speakers at the World Islamic Economic Forum this.