Foreign Ownership in Money Transport Services to be Allowed
The Investment Coordinating Agency (BKPM) has allowed foreign ownership of business operating in money and valuables transport services. Currently, Presidential Regulation No. 39/2014 governs that foreign ownership in money and valuable transport business is set up to 49 percent.
“A proposal came in to the BKPM, asking that the foreign investors should have majority shares,” BKPM chief Franky Sibarani said in a press release on Saturday, November 21, 2015.
Franky explained that companies operating in money and valuables transport services were usually hired by financial institutions, such as banks.
“Their partners are usually banks. With a regulation that allows foreign ownership in Indonesia’s banking, there is a possibility that foreign investors can have majority shares in such security companies,” Franky added.
Franky viewed that the money and valuables transport sector would have a huge potential. Data from Bank Indonesia shows that there are 10 foreign banks operating in Indonesia and 15 mixed banks with thousands of branches in Indonesia. In addition, the total number of auto teller machines (ATM) in Indonesia reaches more than 65,000 units.
According to Franky, the BKPM will coordinate with relevant institutions to follow up the discussion on the investment guide in this sector, including with police, Bank Indonesia, and the Financial Services Authority (OJK).