AMENDMENT TO THE DECREE OF THE MINISTER OF FINANCE NO. 220/KMK.017/1993 ON COMMERCIAL BANKS
(Decree of the Minister of Finance No. 15/KMK.017/1998 dated January 21, 1998)
THE MINISTER OF FINANCE
Considering :
that within the framework of providing wider investment opportunities for
foreign investors in the banking field, it is deemed necessary to revoke
provisions restricting the domiciles and the opening of branch offices of joint
banks, as well as auxiliary branch offices of branch offices of banks domiciled
abroad, by issuing a decree of the Minister of Finance.
In view of :
1. Law No. 13/1968 on the central bank (Statute Book of 1968 No. 63,
Supplement to Statute Book No. 2865);
2. Law No. 7/1992 on the banking system (Statute Book of 1992 No. 31,
Supplement to Statute Book No. 3472);
3. Government Regulation No. 70/1992 on commercial banks (Statute Book of
1992 No. 117, Supplement to Statute Book No. 3503) as already amended
by Government Regulation No. 60/1996 on the amendment of Government
Regulation No. 70/1992 on commercial banks (Statute Book of 1996 No.
90, Supplement to Statute Book No. 3655);
4. The Decree of the Minister of Finance No. 220/KMK.017/1993 on
commercial banks.
D E C I D E S :
To stipulate :
Article I
To amend some provisions in the Decree of the Minister of Finance No.
220/KMK.017/1993 on commercial banks, as follows :
1. To amend Article 16, so that it shall read :
“Article 16.
In carrying out their business activities, commercial banks with the
status of joint banks shall be allowed to provide banking services for
customers in all parts of Indonesia".
2. To amend Article 19, so that it shall read :
“Article 19.
(1) The opening of domestic branch offices of commercial banks can
only be realised with the licence of the Minister of Finance after
taking account of the consideration of Bank Indonesia.
(2) The licence for the opening of offices as meant in paragraph (1)
shall be granted if in terms of solvency and capital the relevant
banks in the last 24 (twenty-four) months have been in sound
condition at least for 20 (twenty) months and in fairly sound
condition in the remaining period.”
3. To revoke the provision in Article 27 paragraph (4).
Article II
This decree shall come into force as from the date of stipulation.
For public cognizance, this decree shall be announced by publishing it in the
State Gazette of the Republic of Indonesia.
Stipulated in Jakarta On January 21, 1998
THE MINISTER OF FINANCE,
Sgd
