Eight tax haven countries are the source of foreign direct investment in Indonesia. The majority came from the British Virgin Islands, followed by Mauritius.
The role of rural banks will also be expanded by allowing them to participate in the recently launched branchless bank program. Under this program, rural banks will be able to act as bank agents.
The relentless sale of government bonds is fuelling concerns about even tighter bank liquidity. However, a government official has denied that banks will be left competing for funds.
Previously, BI Governor Agus Martowardojo said the cut in the bank reserve requirement will help to add the liquidity of banks. Now, BCA has predicted a liquidity increase of IDR 4 trillion.