|Freddy Karyadi||Oene Marseille|
These thresholds are also applicable to multiple parties with special relationships, such as family relations or a common shareholding, or unrelated persons acting in cooperation to control the bank. Where shareholders are related or "acting in concert", they will be deemed as one party and will be subject to the higher shareholding ownership applicable to each of them.
Notwithstanding those limitations, in particular cases a listed bank is still allowed to purchase more than 40% of a domestic commercial bank with approval from Bank Indonesia. It can do this by:
- having an adequate financial health level;
- meeting the required capital adequacy ratio;
- having a Tier 1 Capital Ratio of at least 6%;
- being recommended by its home regulator to acquire a stake in the Indonesian bank;
- being a bank whose shares are publicly traded;
- having committed to purchase the Indonesian bank's debt that is convertible into equity in the Indonesian bank;
- committing to hold its stake in the Indonesian bank for a period of time as determined by Bank Indonesia; and
- committing to support Indonesian economic development through the relevant Indonesian bank.
For existing banks with foreign ownership, Regulation 14/2012 imposes different deadlines to comply with the shareholding requirements depending on the relevant bank's health evaluation (Tingkat Kesehatan Bank) and corporate governance evaluation, to be conducted in December 2013.
Oene Marseille and Freddy Karyadi