Human resources in banking crucial for AEC

JAKARTA. The Financial Services Authority (OJK) has stated that Indonesia wants a smooth integration for the banking sector in the ASEAN Economic Community (AEC), which will become operational by 2020.

“We want to seek out the beneficial principles of the AEC 2020, and we want a constructive integration,” OJK chairman Muliaman Hadad said on Monday.

Muliaman explained that Indonesia already has a strong banking industry and a large domestic market, and thus needs to be developed so that it will provide benefits to every country in the AEC.

“Of course, we have to address all the issues prior to entering the AEC by 2020, which is why we [ASEAN countries] need [to have] further discussions,” he said.

Among the various topics related to an integrated banking industry in the AEC, Muliaman highlighted the capacity building of human resources in the banking sector, both in terms of quantity and quality. In relation to quantity, Muliaman noted that foreign banks in Indonesia must employ local employees in either their domestic offices or foreign branches.

“I asked foreign banks in Indonesia to increase the number of Indonesians in executive positions, as well as those deployed in their foreign branches,” he added.

Muliaman said the step should be integrated with the quality development of Indonesian banking employees.