Foreign Colonized National Banking Issues: In Fact, Domestic Bank Market Share Reaches 73 Percent

Illustration. (Angga Nugraha / VOI)

JAKARTA - Since the bank from South Korea, Kookmin Bank, officially became the majority shareholder of PT Bank Bukopin Tbk, the issue of national banking colonized by foreigners has again surfaced. Moreover, in recent times, there have also been foreign banks which have also annexed the shares of leading banks in the country such as Bank Permata, BTPN, and Bank Danamon.

The Financial Services Authority (OJK) also spoke out on this. The Executive Director of OJK Banking Research and Regulation, Anung Herlianto, explained that currently the total number of banks in Indonesia has reached 110 banks.

He said, there were 70 domestic banks, consisting of 4 government banks, 27 BPDs and 39 private banks. Meanwhile, for foreign banks, he said, the definition is branch offices of foreign banks in Indonesia and banks that are majority foreign owned, currently there are 40 banks.

"In terms of the market share of assets, domestic banks control 73 percent. The market share consists of state banks 43.19 percent, BPD 8.35 percent, and national private banks 21.49 percent," said Anung during the InfobankTalkNews Media Discussion event. , Thursday July 9th.

Meanwhile, for foreign banks, continued Anung, the market share of assets, according to OJK records, is currently only 27 percent. According to him, foreign bank branch offices were 4.19 percent, and foreign-controlled banks were 22.77 percent.

From the results of this data, according to Anung, foreigners are still very far from having an expression of controlling the national market share. In fact, according to him, the trend of controlling the market share of assets by foreign banks continues to decline.

"Most of them are worried that foreigners will continue to enter and dominate our market share. In fact, the foreign market share is only 27 percent, and this has not moved much since 3-4 years ago," said Anung.

Previously, said Anung, foreigners had controlled nearly 32 percent, but slowly the portion continued to decline. However, he did not deny that foreigners had an important role in terms of capital injection.

Furthermore, Anung said, from the perspective of the credit market as a whole, it was still controlled by state banks which reached 43 percent, national private banks 24 percent, and BPD 9 percent. Meanwhile, 3 percent for foreign bank branch offices and 21 percent for foreign-owned banks.

Likewise with the market share of third party funds (DPK). Anung said, the share of the DPK market was still controlled by state banks by 41 percent, national private banks 23 percent, and BPD 8 percent.

"Meanwhile, foreign-owned banks control 22 percent and foreign bank branch offices 6 percent," he explained.