Indonesian banks to provide broader trust services

Hamud M. Balfas is a lawyer with Ali Budiardjo Nugroho Reksodiputro (ABNR) in Jakarta, Indonesia. He may be contacted at: hbalfas@abnrlaw.com. Hamud writes articles on various aspects of law (www.abnrlaw.com). He is also an author of a book on Indonesian Capital Market (Hukum Pasar Modal Indonesia), now in its second edition.

Although Indonesian Banking Law (‘Law No 7/1992’) allows Indonesian banks to provide trust services, the banks (especially those which are locally owned) usually offer only limited services to clients in this area.