The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms & Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
Southeast Asia

Indonesia banking: Time to revisit the sins of the fathers

The southeast Asian country was brought to its knees 20 years ago because of the failure of its biggest banks. A generation on, the same clans are back in banking and the regulator says he isn’t fussed.

If you cast your gaze over any recent banking crisis and look at what is left, one question worth asking is whether or not the regulators who cleaned up the multi-billion-dollar mess should allow those responsible, or their heirs, or even their loyal lieutenants, to remain involved in the financial industry.

That question is particularly pertinent in Asia where family-owned empires dominate commerce, and where it is common for the younger generations to defer to the elderly founder-patriarchs.

Wimboh Santoso,

In the case of Indonesia, where the banking mess took years to clean up, it seems that’s fine. Just ask Wimboh Santoso, the 61-year-old head of Indonesia’s independent financial services authority, known as Otoritas Jasa Keuangan (OJK). 

He says he doesn’t see any problem with the re-entry into Indonesian banking of the same business clans whose mismanagement of family-owned banks contributed to the collapse of the country’s economy two decades ago thanks to their flouting of basic banking rules, such as restrictions on related party transactions.

Three of the dynasties associated with banks that failed in the crisis are involved in new banks, as revealed by Asiamoney last year.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree