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Indonesia banking bill: proposed restrictions on foreign investment - July 2014

January 2015 - Finance. Legal Developments by Norton Rose Fulbright.

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Indonesia's House of Representatives is currently considering a new draft banking bill (the Banking Bill) which, if passed into law in its current form, will:

  1. prohibit foreign banks from operating in Indonesia through branch offices; and
  2. cap foreign ownership of an Indonesian bank at 40 per cent of the total issued share capital of that bank.

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