| Headline: Indonesia Source: Euromoney Date: July 2001
Bank Central Asia Best equity house: Bahana Securities Best debt: Danareksa Securities Best M&A house: CSFB Indonesia’s banking sector is the slowest in the region to recover from the Asian crisis of 1998. The government has apparently wrapped up its recapitalization of the banks and is now attempting to get them back up on their feet. But there are fears that President Abdurahman Wahid’s administration may have to provide a second wave of recapitalization on top of the $60 billion it handed out first time around. If the banking sector is ever going to improve it will have to move away from the present model of merely holding government paper and deposits that are guaranteed by a weary administration. Banks will have to become active suppliers of credit to the economy. But the shadow of non-performing loans increasing again looms over the sector. The currency is in free fall. Over the past year there was a 5% increase in the loan sector but 30% to 40% of the loans were in dollars. | |||||||||||||||||||||||||||||||||||||||||