VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Financial Services Authority –OJK will revise a regulation No. 39/2017 about single bank ownership or single presence policy. Based on the regulation, each party can only become a controlling shareholder of one bank. The ownership of two banks can be done if one of them is a mixed bank or a bank with sharia principles. If the controlling shareholder of a bank wants to take over another bank, he or she is obliged to choose one option through mergers, parent formation in the banking, or holding function.

This regulation aims to encourage banks to compete in Indonesia and abroad. Many banks in Indonesia are difficult to compete because they have little capital. There are still a large number of banks with little capital in Indonesia. The number of commercial banks in Indonesia currently reaches 115 banks. Although it has experienced a significant decline from the previous 250 banks, the number of 115 banks is still too many. Indonesia is ranked first as the country with the highest number of banks in Southeast Asia. The large number of banks in Indonesia is caused by banking deregulation policy in the New Order era. During the New Order era, establishing a new bank only needed capital worth Rp 10 billion.

Since the stipulation of the regulation No. 39/2017, the number of banks is still stagnant at 115. This means that there are no banks that have merged. Even if banks form a parent company, or merge, they will have large capital and they are able to be competitive.

Why aren't any small banks merging according to OJK regulations, even though the condition of the bank is unable to compete?

The factor of obligation to merge, and the establishment of a holding company are considered to be a barrier. Thus, the plan to revise the single presence policy is expected to provide flexibility for the controlling shareholders of a bank to choose other options besides mergers and the establishment of a holding company.

If the OJK does not revise regulation No. 39/2017, OJK needs to provide banking incentives. In addition, the OJK also needs to be firmer in encouraging banks to merge. 

Improving People's Nutrition to become a Healthy and Outstanding Nation is the theme of the National Nutrition Day 2019 to be commemorated on January the 25th 2019. Meanwhile, Nutrition Awareness, Healthy and Productive Indonesia is the sub-theme of the event. Director General of People's Health the Indonesian Health Minister, Kirana Pritasari, said that in a bid to improve the nutrition of Indonesian people, commitment and dedication from all stakeholders are required. The Indonesian Health Ministry is trying to introduce a program called Healthy Indonesia to Indonesian families. The program has four priorities namely reducing the mortality rate of infant and mother effectively, improving nutrition in a bid to prevent stunting, and overcoming infectious and non-infectious diseases.

Stunting is the impairment of children's growth. It is a condition when infants and children cannot grow properly due to the lack of nutrition. However, stunting is preventable since pregnancy by consuming healthy foods which contain essential nutrients like iron and providing exclusive breastfeeding for the infants.

A number of health issues especially children's health issues have become a serious challenge for Indonesia. Although child's health has improved particularly regarding the fulfillment of nutrition, it has not yet been maximum in accordance to the standard of the World Health Organization. Nutrition affects children's growth and development therefore children must acquire sufficient nutrition to support their growth since their first 1,000 days.

The development of health by improving the quality of Indonesia's human resources contributes to providing long-term and sustainable benefits. One of the most important aspects in developing Indonesian people health is by fulfilling their nutrition.

Indonesian youths hold the key to support the development of this nation. Without having proper nutrition, they cannot develop their potentials to advance the country. The time has come for us to be more aware about the importance of implementing a healthy and balance lifestyle so that we can achieve a better, healthier, and more quality life.

Today in History begin with January 8, 1912, the African National Congress was established.

The African National Congress (ANC) is a Central-left South African political party and was founded on January 8, 1912 in Bloemfontein to protect the rights of the black majority. The ANC is the only party to have ruled South Africa since 1994. Support for the party had diminished in the 1999 elections, but they regained additional support in the subsequent elections in 2004.

Turning to January 8, 1926, Abdul Aziz bin Saud became the first King of Saudi Arabia. Initially, Abdul Aziz As-Saud was Sultan Nejd who conquered the Hijaz Kingdom in 1925. On January 8, 1926, Abdul Aziz bin Saud was crowned as King of Hijaz in the Grand Mosque. On January 27, 1927, he also raised the status of Nejd to become a kingdom. Based on the Jeddah Treaty on May 20, 1927, Abdul Aziz's power was recognized by the United Kingdom and his country was called the Kingdom of Nejd and Hijaz. For five years, Abdul Aziz ruled his two kingdoms as separate units. On September 23, 1932, the main Saudi territories namely Al-Hasa, Qatif, Nejd and Hejaz, were united into the Kingdom of Saudi Arabia.

Today in History with January 8, 2003, a Turkish Airlines plane crashed. Turkish Airlines Flight 634 was a domestic aircraft scheduled to fly from Istanbul Ataturk Airport to Diyarbakir Airport, in the southeast of Turkey. Because of bad weather, the plane crashed into the slope of a mountain. The aircraft broke into three and an explosion occurred that killed 75 of the 80 passengers and crew, including the pilot and co-pilot. Based on the investigation, the thickness of the fog had  made the pilot unable to see clearly.

The World Bank provided clarification about a report entitled ‘Infrastructure Sector Assessment Program (InfraSAP) which was recently quoted by several media. The report states that infrastructure in Indonesia is of low quality and not well planned. The World Bank report released in June 2018 also mentions that the administration of Joko Widodo and Yusuf Kalla relies on State-Owned Enterprises SOEs in building infrastructure. This was reflected in the government's decision to provide direct assignments of a number of projects to the SOEs.

The World Bank immediately issued clarification regarding the news. In its release, the World Bank confirmed that the report had not been officially published and was still in the finalization stage. However, the World Bank did not deny the news.

In a written statement on Monday (7/1), the World Bank reported that in compiling the report, the World Bank collaborated closely and discussed with relevant parties in the government, such as the Ministry of Finance, Bappenas, various Coordinating Ministries, Ministry of State-Owned Enterprises (BUMN) and the Financial Services Authority (OJK).

InfraSAP is a comprehensive analysis related to various obstacles, which can reduce funding for commercial and private infrastructure. This report is one of the possible policy reforms that can be considered and carried out by Indonesia in the short and medium term.

The World Bank has started preparing the report since mid-2017. This is in accordance with the invitation of the Indonesian government to cooperate in finding solutions in a bid to be able to attract more private and commercial funding for infrastructure investment.

Apart from the clarification of the World Bank regarding the report, the Indonesian government has responded positively. Minister of Finance, Sri Mulyan assessed the World Bank report as a positive input for the government. The same statement was expressed by Minister of National Development Planning (PPN / Head of Bappenas), Bambang Brodjonegoro who claimed to have communicated with the World Bank regarding the InfraSAP report.

Indeed, the World Bank has not officially issued the InfraSAP report. But there is nothing wrong for the government to prepare itself for some improvements in infrastructure development planning. Take for example; one of the SOEs that will work on an infrastructure project can cooperate with the regional companies in the location. Thus, the project can have a direct double effect on the area; the infrastructure is built and regional companies can develop.