Distinguished ladies and gentlemen, 41. Segmentation in the area of banking capacity is also found. A great number of banks are operating in contrast to their capacity, and even below their level of economies of scale, hence creating inefficiency. 42. According to Bank Indonesia study, a bank must at least have Rp1 trillion of core capital in order to start operate efficiently.
Core capital requirement must increase to at least Rp5 trillion to enable banks to operate at a level of optimal efficiency. 43. This explains why in general the level of our banking efficiency has not been satisfactory.