Indonesia’s government is working on a plan to put 4 state banks under a holding company. This is seen as a first step towards creating a lending powerhouse in the whole of South-east Asia. According to the plan, the government will set up PT Danareksa, a government-owned financial company, as a holding company. The 4 banks that will come under this holding company are Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia and Bank Tabungan Negara. State pawnshop PT Pegadaian and state small business financing firm PT Permodalan Nasional Madani will also be under the holding company. The company is expected to oversee 40% of Indonesia’s banking assets, worth hundreds of billions of dollars.
