ID :
22491
Fri, 10/03/2008 - 15:30
Auther :
Shortlink :
https://www.oananews.org//node/22491
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GOVT SHOULD EXPLAIN COUNTRY'S ECONOMIC RESILIENCE TO PUBLIC: KADIN
Jakarta, Oct 3 (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) called on the government to provide the public with intensive information on the country's economic resilience so that the United States financial crisis would not have an adverse psychological impact on domestic bank customers.
"Basically, the impact of the United States financial crisis on us is not significant. But we need to prevent depositors at home from rushing the banks such as has happened in the US, China and Hong Kong," Bambang Soesatyo, chairman of Kadin's Permanent Committee for Monetary and Fiscal Affairs, said here on Friday.
He said in a situation like now, usually bank customers needed information on the country's economic resilience, such as foreign exchange reserves and banks' ability to provide funds for public fund withdrawals.
Bambang said each bank usually had main customers who had to be informed that their money remained safe in the bank because Indonesia did not experience a situation like that in the United States now.
"The most important thing is that banks' liquidity must remain secure. No matter how much money the depositors are willing to withdraw, banks are able to meet their demand," he said adding that in the present situation banks should not create the impression that they were facing a liquidity problem because that would create very dangerous rumors.
He said the monetary crisis in 1998 peaked when depositors rushed the banks, which was a deadly attack on national banks, so that, at that time, the monetary authorities tried to save the banking system by issuing a monetary instrument called Bank Indonesia Liquidity Assistance (BLBI).
"So, in the present situation, the most important thing is to protect the banking system. Let the public be convinced that their money in the bank remains safe so that a rush can be prevented," Bambang said.
He expressed hope that the US Congress would approve the country's financial crisis bailout package for the sake of restoring the stability of the global economy.
"Basically, the impact of the United States financial crisis on us is not significant. But we need to prevent depositors at home from rushing the banks such as has happened in the US, China and Hong Kong," Bambang Soesatyo, chairman of Kadin's Permanent Committee for Monetary and Fiscal Affairs, said here on Friday.
He said in a situation like now, usually bank customers needed information on the country's economic resilience, such as foreign exchange reserves and banks' ability to provide funds for public fund withdrawals.
Bambang said each bank usually had main customers who had to be informed that their money remained safe in the bank because Indonesia did not experience a situation like that in the United States now.
"The most important thing is that banks' liquidity must remain secure. No matter how much money the depositors are willing to withdraw, banks are able to meet their demand," he said adding that in the present situation banks should not create the impression that they were facing a liquidity problem because that would create very dangerous rumors.
He said the monetary crisis in 1998 peaked when depositors rushed the banks, which was a deadly attack on national banks, so that, at that time, the monetary authorities tried to save the banking system by issuing a monetary instrument called Bank Indonesia Liquidity Assistance (BLBI).
"So, in the present situation, the most important thing is to protect the banking system. Let the public be convinced that their money in the bank remains safe so that a rush can be prevented," Bambang said.
He expressed hope that the US Congress would approve the country's financial crisis bailout package for the sake of restoring the stability of the global economy.
