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Support the Minister of Finance, Communities Are Urged to Build Confidence in Facing the Global Economic Crisis

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The effects of the Covid-19 pandemic are still being felt by the global community today. It was estimated that a few months ago, the global economy would be in 2023.

This also had an impact on banks in America which had collapsed. The most pronounced bank falls were Silicon Valley Bank (SVB) and Signature Bank.

It was not only the US that was shaken by the collapse of the SVB, in fact the bankruptcy of the SVB also affected banks in other countries.

For this reason, the Minister of Finance said that global market conditions in the last week due to the bankruptcy of SVB and Signature Bank in America must be watched out for. Don’t let Indonesian banks be affected.

“What we have to watch out for now are global market conditions which, like what happened last weekend, were the closure of relatively small Silicon Valley Bank, a regional bank, with assets of only US$ 200 billion,” said Sri Mulyani.

Chairman of the Supervision Board of Bank Indonesia Muhammad Edhie Purnawan PhD said the collapse of the American bank still had no impact on the economy in Indonesia.

“If we look at inflation and also commodity prices, we see that there has been a decline in inflation because America, one of them, carried out a tight monetary policy, including monitoring commodity prices one by one. We found that although commodity prices fell slightly for some types of commodities, others were relatively stable,” he said through an official statement, Saturday (18/3/2023).

For this reason, he said that Indonesia would be safe from the domino effect resulting from the bank crisis in America if the government and the people build trust together in facing the global crisis.

“We all have to fully believe in the Minister of Finance’s statement, that there will not be a relatively large impact on the incident at American banks,” he said.

The same thing was also said by the Dean of the Faculty of Economics and Business, University of Indonesia, Dr. Teguh Dartanto PhD who said, Indonesia has strong experience in dealing with monetary crises, especially during the crisis during the Covid-19 pandemic yesterday.

“I think from yesterday’s pandemic experience we have learned from it, so I think Indonesia is quite ready to face global conditions, US conditions where there is a possibility that there will be a domino effect,” he explained.

However, he explained that in facing the monetary crisis due to the domino effect of bankruptcies in America, there must be good coordination between the four financial institutions in Indonesia, namely the Ministry of Finance, Bank Indonesia, OJK, and the Deposit Insurance Corporation (LPS).

“But I think with quite intense coordination from 4 authorities, the Ministry of Finance, Bank Indonesia, OJK, and the Deposit Insurance Corporation (LPS), I think we can mitigate it because of the experience we have gone through,” he said.

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