Home Finance Ratification of AFAS is feared to Open Foreign Opportunities in Indonesia

Ratification of AFAS is feared to Open Foreign Opportunities in Indonesia


Jakarta -The Asean Framework Agreement on Services (AFAS) ratification is feared to open the door for foreign banks to enter Indonesia.

Professor of Economics Faculty Hasanuddin Marsuki University said the ratification of AFAS should be able to add value to the national banking strategy that difficulties enter the market of other countries, even just in Asean countries.

However, he regretted if the ratification opens opportunities for foreign banks to invade Indonesia. Especially before the ratification of any foreign bank is quite dominant in Indonesia.

“As for us, there is not a single national-owned bank called bank in any country in the world, other than just as a cash office,” he told on Sunday (18/3/2018).

Indonesia is the only country in the Southeast Asian region that never ratified

For information, there are two new points in the sixth protocol of AFAS, namely Asean Banking Integration Framewrok / ABIF (Asean Banking Integration Framewrok / ABIF) as well as the selection of Makassar City as an option location of branch offices of banks from ASEAN member countries.

Before Makassar, Southeast Asian banks were previously allowed to open branches in Jakarta, Bandung, Surabaya, Manado, Padang and Ambon.


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