An Economic analyst of the Institute for the Development of Economics and Finance, Aviliani, offered the suggestion that the Indonesian central bank should do more to encourage the merger of private banks. According to Aviliani, BI is in a good position to do this as its regular monitoring of Indonesian banks allow it a wealth of data with which to analyze and suggest merger possibilities based on the needs and compatibilities of potential mergers. Aviliani elaborated that as the central bank is able to study factors of compatibility, it should then assume a more proactive role in facilitating meetings between the managers and owners of banks with the purpose of discussing merger possibilities. With regards to providing incentives, Aviliani stated that BI should not offer these in any form to entice banks to merger, such as by lowering capital adequacy ratio (CAR) and non-performing loan requirements (NPL). Because a higher CAR and a lower NPL indicates health in a bank, it is clear that the central bank should encourage bank mergers that would produce a high-CAR/low-NPL result. According to Bank Negara Indonesia (BNI) analyst, Ryan Kiryanto, arrangements should not just be based on strength of capital, but also on strategic value; his example: merge a bank that is strong in corporate banking with another that is good at retail. Unlike Aviliani, Kiryanto is of the opinion that BI should provide incentives, both in the form of sticks and carrots, to encourage bank mergers.

            Currently, the minimum CAR ratio is 8%, and the maximum NPL ratio is 5%. Also, BI requires all banks to achieve a Rp. 100 billion (US$ 11.7 million) minimum capital goal by the year 2010. [aws]