There are four kinds of commercial banks in Indonesia the state banks the foreign banks the private domestic banks and the regional development banks.of the private banks only ten are licensned to deal in foreign exchange these plus the state and foreign banks are known collectively as the foreign exchange banks.Various kinds institutions provide competition for some of the operations of the commercial banks.These include a large number of foreign banks which lend to Indonesian entrerprises from offshore a group of nine joint venture merchant banks and asmaller group of development finance institutions including a state owned development bank.