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Until recently, Indonesia has had a liberal policy on the ownership of its banks, allowing any single investor (including a foreign investor) to acquire up to 99% of an Indonesian commercial bank. This was due, in part, to the Indonesian government's bail-out and recapitalisation of many ailing banks during the Asian financial crisis in the late 1990s and the subsequent privatisation of those banks in the early 2000s, many of which were sold to foreign investors. Recent moves by Bank Indonesia to review ownership rules for its domestic lenders were accelerated when DBS announced its proposed takeover of Bank Danamon for US$7.3 billion in April this year. After widespread speculation, Bank Indonesia unveiled its new rules on the ownership of Indonesian banks last week.

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