ID :
32448
Wed, 11/26/2008 - 10:07
Auther :
Shortlink :
https://www.oananews.org//node/32448
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GOVT TO CONSIDER PROVIDING INTER-BANK GUARANTEE
Jakarta, Nov 25 (ANTARA) - The Indonesian government will consider the possibility of providing an inter-bank guarantee to bolster public confidence in the banking system, Finance Minister Sri Mulyani said here Tuesday.
Speaking to the press after attending an Investors Forum and Capital Market Outlook 2009 meeting, the minister said the government was in principle never closed to suggestions and inputs from any party, including proposals for the issuance of an inter-bank guarantee.
"Of course, the decision will be taken after an evaluation of developments in the situation and conditions," she said, adding she could not as yet say when it would be done.
To prevent a recurrence of the Century Bank case, she said, the government would intensively examine reports from Bank Indonesia (the central bank) which would now more closely monitor banking operations.
She said through the Financial Sector Stability Committee (KSSK) forum the government would in coordination with Bank Indonesia monitor the development of banks' condition to minimize systemic risks that might arise following a bank's default.
The minister called on the public to remain calm and fully trust the government. "Do not panick," she said.
On the occasion she also explained steps that have been, are being and will be taken by the government in the face of the current global crisis.
She said the government would maintain fiscal sustainability by adjusting the 2009 budget such as correcting the economic growth target to 4.5 to five percent by keeping household consumption growth at five percent.
In addition, the government would also increase the state budget deficit to over one percent of the gross domestic product as a countercyclical measure and stimulus to the business world and the public in case extra-financing became necessary.
The government would also design a stimulus for the real sector in the form of tax and import duty subsidy totalling Rp12.5 trillion and provide a contigency funding source in case a market shut down occurred, she said.
The next step to be taken was speeding budget funds' disbursement to ease rupiah liquidity in the market, she said.
She said the government would also cooperate with Bank Indonesia to buyback state bonds (SUN).
The government would also improve the quality of its coordination with Bank Indonesia institutionally as well as through empowerement of the KSSK.
PWP09
Speaking to the press after attending an Investors Forum and Capital Market Outlook 2009 meeting, the minister said the government was in principle never closed to suggestions and inputs from any party, including proposals for the issuance of an inter-bank guarantee.
"Of course, the decision will be taken after an evaluation of developments in the situation and conditions," she said, adding she could not as yet say when it would be done.
To prevent a recurrence of the Century Bank case, she said, the government would intensively examine reports from Bank Indonesia (the central bank) which would now more closely monitor banking operations.
She said through the Financial Sector Stability Committee (KSSK) forum the government would in coordination with Bank Indonesia monitor the development of banks' condition to minimize systemic risks that might arise following a bank's default.
The minister called on the public to remain calm and fully trust the government. "Do not panick," she said.
On the occasion she also explained steps that have been, are being and will be taken by the government in the face of the current global crisis.
She said the government would maintain fiscal sustainability by adjusting the 2009 budget such as correcting the economic growth target to 4.5 to five percent by keeping household consumption growth at five percent.
In addition, the government would also increase the state budget deficit to over one percent of the gross domestic product as a countercyclical measure and stimulus to the business world and the public in case extra-financing became necessary.
The government would also design a stimulus for the real sector in the form of tax and import duty subsidy totalling Rp12.5 trillion and provide a contigency funding source in case a market shut down occurred, she said.
The next step to be taken was speeding budget funds' disbursement to ease rupiah liquidity in the market, she said.
She said the government would also cooperate with Bank Indonesia to buyback state bonds (SUN).
The government would also improve the quality of its coordination with Bank Indonesia institutionally as well as through empowerement of the KSSK.
PWP09
