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Sri Mulyani praised the banking industry for being able to withstand the crisis

Kamis, 15 November 2018 / 14:19 WIB

Sri Mulyani praised the banking industry for being able to withstand the crisis
ILUSTRASI. Menkeu Sri Mulyani

KONTAN.CO.ID - JAKARTA. The Indonesia Banking Expo (IBEX) 2018 officially opens on Wednesday (11/15). The banking industry and regulators participated in this largest banking expo in Indonesia.

In her remarks, Minister of Finance Sri Mulyani gave her appreciation to the banking industry for being able to withstand the crisis.

 "Over the past 20 years, after the 1998 economic crisis, the banking industry has been re-tested with difficult tests," Sri Mulyani said at the IBEX 2018 The Next Generation of Banking in The Fourth Industrial Transformation Thursday (11/15).

The first challenge was during the 2008 economic crisis. According to Sri Mulyani, the 1998 economic crisis threatened the entire world economy. However, Indonesian banks can survive.

Secondly, the 2011-2014 economic crisis that occurred due to the extreme decline in world commodity prices. Commodity prices that have decreased include oil, gas, coal, and CPO. Sri Mulyani said that some of these commodities were the main contributors to the Indonesian economy at that time.

Under these conditions, the ratio of non-performing loans (NPLs) of banks increased. However, according to Sri Mulyani, banks have successfully passed this test. At that time, banking players were quick to respond by restructuring non-performing loans.

Then, referring to the current conditions, Sri Mulyani assessed that banks are also ready to face changes in the global economy such as changes in US economic and fiscal policies. (Translator: Barratut Taqiyyah Rafie)

 


Reporter: Galvan Yudistira
Editor: Barratut Taqiyyah Rafie
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