ID :
22816
Mon, 10/06/2008 - 07:02
Auther :
Shortlink :
http://m.oananews.org//node/22816
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GOVT, BANK INDONESIA TO STRENGTHEN COORDINATION IN FACE OF US CRISIS
Jakarta, Oct 5 (ANTARA) - The government and the central bank (Bank Indonesia) will continue to strengthen coordination in line with the worsening economic crisis in the US, Bank Indonesia (BI) governor Boediono said here on Sunday.
"On several occasions we and the coordinating minister for the economy have often established coordination and communication. Now in the current economic turmoil coordination will be very important and needs to be strengthened," he said at a press conference.
He said BI and the government were united to protect the country from the impact of the US crisis.
"Our task is protecting our house by setting up our own hedges, by not fighting among ourselves because if we are not united our house will be affected more badly," he said.
Finance minister Sri Mulyani shared her view saying coordination would not only be established among the relevant ministers but also among officials below them.
Boediono said although the impact of the US crisis was still a minimum now, caution must be taken because the crisis would likely last quite long and to make the country ready in case the impact grows.
He said the country's economic fundamentals were now good and the banking sector was also quite strong.
He said until August 2008, credits grew 16 percent with capital adequacy ratio (CAR) 16 percent higher than the minimum requirement of eight percent while the non-performing loan (NPL) is 3.95 percent.
He said however that he would continue strengthening the banking sector by adjusting its credit growth which was considered too fast.
"This is probably what has to be adjusted because the credit growth is rapid," he said.
He said Indonesia now is in a phase different from that of the European countries and the US. He said Europe and the US are now facing credit distribution problems due to liquidity freeze as a result of the financial crisis.
Indonesia, he said, is in the reverse situation. Ita banks have been too fast in distributing credits so that they grew very high. In view of that he said he would keep the growth from going too fast by supporting sustainable economic growth.
"On several occasions we and the coordinating minister for the economy have often established coordination and communication. Now in the current economic turmoil coordination will be very important and needs to be strengthened," he said at a press conference.
He said BI and the government were united to protect the country from the impact of the US crisis.
"Our task is protecting our house by setting up our own hedges, by not fighting among ourselves because if we are not united our house will be affected more badly," he said.
Finance minister Sri Mulyani shared her view saying coordination would not only be established among the relevant ministers but also among officials below them.
Boediono said although the impact of the US crisis was still a minimum now, caution must be taken because the crisis would likely last quite long and to make the country ready in case the impact grows.
He said the country's economic fundamentals were now good and the banking sector was also quite strong.
He said until August 2008, credits grew 16 percent with capital adequacy ratio (CAR) 16 percent higher than the minimum requirement of eight percent while the non-performing loan (NPL) is 3.95 percent.
He said however that he would continue strengthening the banking sector by adjusting its credit growth which was considered too fast.
"This is probably what has to be adjusted because the credit growth is rapid," he said.
He said Indonesia now is in a phase different from that of the European countries and the US. He said Europe and the US are now facing credit distribution problems due to liquidity freeze as a result of the financial crisis.
Indonesia, he said, is in the reverse situation. Ita banks have been too fast in distributing credits so that they grew very high. In view of that he said he would keep the growth from going too fast by supporting sustainable economic growth.
