AN ASSESSMENT OF THE ASSET MANAGEMENT COMPANY MODEL IN THE REFORM OF INDONESIA'S BANKING SECTOR

Jake Redway

Bulletin of Indonesian Economic Studies, 2002, vol. 38, issue 2, 241-250

Abstract: Lack of satisfactory progress with reform of the banking sector may imply that the chosen remedies were unworkable in the Indonesian context. These remedies, suggested by the international community, appear not to have taken proper account of the commercial and political ramifications of the new institutions and mechanisms that were to be put in place. Of key importance is the practical difficulty of finding suitable buyers for banks and assets taken over by the new bank restructuring agency. Almost the entire corporate sector was in distress as a result of the crisis, while foreign buyers were reluctant to commit themselves given an inadequate legal system as well as significant nationalistic opposition to the sale of corporate assets to foreign entities. This article discusses reasons for the failure to achieve several principal objectives of the reforms, and canvasses alternative approaches that might be more successful.

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/000749102320145075 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:bindes:v:38:y:2002:i:2:p:241-250

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CBIE20

DOI: 10.1080/000749102320145075

Access Statistics for this article

Bulletin of Indonesian Economic Studies is currently edited by Firman Witoelar Kartaadipoetra, Arianto Patunru, Robert Sparrow, Sarah Xue Dong and Sean Muir

More articles in Bulletin of Indonesian Economic Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().