Foreign Banks
The landscape of foreign banks too have changed tremendously over the past few years. While they were only allowed to open branches in up to 10 major cities in Indonesia, the regulation has changed that to being allowed to open branches in any location around Indonesia. To set up their branches, foreign banks are required to have an operating capital at a minimum of Indonesia Rupiah 3 trillion which is around US Dollars 300 Million. Hence most of the foreign banks prefer to set up representative offices which do not carry out any commercial activities but invests in domestic banks instead.
