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Indonesia: Amendments to Stock Market and Banking Regulations in Response to Liquidity Issues

(Oct. 15, 2008) Media sources have reported temporary amendments to Indonesian stock market and banking regulations. These amendments include: permitting companies to buy back 20 percent of their paid-up capital, double the previous maximum, without requiring shareholder approval (state-owned enterprises will have access to Rp4,000 billion [sic] (about US$420 million) to buy back their shares), and lowering banks' minimum reserve requirements from 9.08 percent of assets to 7.5 percent. (John Aglionby, Indonesia Moves to Tackle Liquidity Crisis, FT.COM, Oct. 9, 2008, available at http://www.ft.com/cms/s/0/77c2e954-962b-11dd-9dce-000077b07658.html.)