The government continues to monitor to assess the impact of the crisis on a number of banks in the United States (US) for the Indonesian economy. The Ministry of Finance (Kemenkeu) has taken a number of anticipatory steps to deal with the impact of the bank crisis in the US.
The crisis experienced by several banks in the US indirectly created a number of domino effects for the global economy, including Indonesia. This is in accordance with President Jokowi’s direction to increase awareness of banking conditions in the US which are in a negative phase.
Responding to this, the Dean of the Faculty of Economics and Business, University of Indonesia, Dr. Teguh Dartanto, Ph.D, thinks Indonesia will be able to overcome the crisis turmoil in the US which has the potential to affect the national banking industry. Banks in Indonesia are relatively safe because the relationship between the three bankruptcies in America and Indonesia is not high.
“Indonesia also has experience during a pandemic. Indonesia has become one of the best economies which has performed quite well during the pandemic. The experience of the financial crisis in 2008 was also a determining factor when a bank collapse occurred in America which had an impact on Indonesia and other countries. said Teguh.
This is inseparable from a number of policies taken by the Minister of Finance Sri Mulyani to keep the country’s financial sector prudent and more resistant to the turmoil of the global economic crisis due to the pandemic and the Russia-Ukraine war.
“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. Good coordination between the Ministry of Finance, Bank Indonesia, OJK and LPS is proof that Indonesia has a number of experiences in dealing with potential global crises due to the poor US banking situation,” said Teguh.
The same thing was conveyed by the Chairman of the Supervision Agency of Bank Indonesia, Muhammad Edhie Purnawan, Ph.D, who said that banks in Indonesia do not need to panic too much because the Minister of Finance Sri Mulyani continues to take a number of steps as an effort to mitigate the impact of the bank crisis in the US.
“There is definitely a domino effect, but not as big as we worry about. With fairly intense coordination from the four authorities, as well as experiences from crises and pandemics, we can mitigate these concerns,” said Muhammad Eddie.
To keep the situation conducive, Bank Indonesia as the central bank must continue to coordinate with the Ministry of Finance in order to maintain Indonesia’s financial stability from the impact of the three bank crises in the US. For this reason, 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.