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Academics Appreciate the Policy of the Minister of Finance Sri Mulyani Maintaining Indonesia’s Economic Stability

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Jakarta – Dean of the Faculty of Economics and Business, University of Indonesia, Teguh Dartanto, Ph.D, said he appreciated it
the policies of the Minister of Finance Sri Mulyani in maintaining Indonesia’s economic stability amid the global crisis that is currently hitting a number of countries in the world.

Teguh Dartanto assessed that the Minister of Finance’s statement regarding Indonesia’s condition was quite safe and the financial sector in Indonesia was much more prudent than before because we had experience of a crisis which was an extraordinary achievement because the Asian financial crisis in 1998 changed the architecture of Indonesian banking, so that it was far more prudent in managing risk.

This was conveyed by the Dean of the Faculty of Economics and Business, University of Indonesia, Teguh Dartanto while participating in a dialogue on a television station
national private television station, Saturday 18/3/2023.

Teguh Dartanto added, the experience of the financial crisis in 2008, where there was a bank collapse in America which had an impact on Indonesia and other countries.

On the other hand, Indonesia also has experience during the pandemic. Indonesia has become one of the best economies which has performed quite well during the pandemic.

There are two influential factors, namely good policy and good luck. Indonesia can properly control issues related to finance and policies in the real sector are quite controlled. Interestingly, the coordination of the fiscal sector, monetary sector, and financial sector. This means that there is good coordination between the Ministry of Finance,
Bank Indonesia, OJK and LPS. Experience during the last pandemic can be a lesson, so that Indonesia is sufficiently prepared to face global conditions which are likely to have a domino effect, explained Teguh Dartanto.

The Domino effect is definitely there, but not as big as we worry about. With fairly intense coordination from the four authorities, as well as crisis experiences
and pandemics, we can mitigate these concerns, concluded the UI academy.

The precise policy adopted by Minister of Finance Sri Mulyani became the key to saving the Indonesian economy from the global crisis that hit the world. The Minister of Finance with his data and analysis has shown that Indonesia is safe. Therefore, one of the people who contributed to Indonesia’s
current economic stability, said the Dean of the Faculty of Economics and Business, UI.

The direct impact of events in America may not occur, but the possibility of an indirect impact is always there.
This is what we need to monitor constantly, and what the government must do at this time is to remain vigilant, said Teguh Dartanto.

Meanwhile, the Chairman of the Supervision Board of Bank Indonesia, Muhammad Edhie Purnawan, Ph.D, said that if you look at various indicators such as the
Composite Purchasing Managers Index (PMI) from several countries, it is still above 50, so it is still relatively good. There is also a poultry dry index which shows improvement.

In addition, if you look at the estimates a few months ago, that the world economy will be dark in 2023 and there have been several turmoils in banking in America in recent days as well as inflation and commodity prices which have continued to increase so that the global economy must become a common concern, said Muhammad
Edhie .

Indonesia itself must be able to build strong trust with the policies implemented by the Minister of Finance Sri Mulyani so that Indonesia will be safe from the current global crisis, said the Chairperson of the Bank Indonesia Supervision Agency.

If Sri Mulyani’s policies in dealing with the global crisis are implemented consistently, banks in Indonesia will be relatively safe because the linkage between the
three bankruptcies in America and Indonesia is not high. What needs to be considered is the companies being financed, especially start-ups that are linked to big banks in Europe or America. Banks in Indonesia don’t need to worry about that, explained Muhammas Edhie

We must fully believe in the policies and statements of the Minister of Finance, that there will not be a relatively large impact on Indonesian banks with the incidents in American banks, emphasized Muhammad Edhie.

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