Partial Privatisation in Banking: The Indonesian Experience

Abstract

This paper aims to examine in-depth the events leading up to the partial privatisation in Indonesian State-Owned Banks (SOBs). The paper addresses the following questions: What is the meaning of ‘partial privatisation’ in the banking sector? How has partial privatisation of banking been carried out in Indonesia? What lessons can be learned about the strengths and weaknesses of partial privatisation as a method of reforming SOBs in developing economies?