This article aims to analyze policy deregulation package of october 27th, 1988 (pact 1988): its effect on banking liberalization Indonesia of period 1988-1993. Policy Package of October 27th 1988 provide the big opportunity for various parties especially in private sector to build a new work or expand a work in banking field. That policy provides licensing facilities for Indonesian banking institutions in expanding their operational networks. To examine that problem, the writer used history method which consist of four stages, they are heuristic, criticism, interpretation, and historiography. The approach which used in this research is economics of banking field.
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