ID :
30428
Sun, 11/16/2008 - 00:03
Auther :
Shortlink :
http://m.oananews.org//node/30428
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BANKER URGES GOVT TO ISSUE BLANKET GUARANTEE
Jakarta, Nov 15 (ANTARA) - The government needs to immediately adopt a policy for the issuance of a blanket guarantee on bank deposits and make funds available to protect the real sector, especially labor-intensive industries, a banker said.
"The most important thing is to maintain financial stability in the country, especially in banking," Mochtar Riady, chairman of Lippo Group, said at a seminar themed "Reinventing Indonesia: The Challange of Indonesia Economy and Business Leaders 2009," here Saturday.
He said the governmwent had better follow the example of other countries and provide a blanket guarantee to assure owners of deposits in local banks that their money was safe.
"Singapore has already issued a blanket guarantee while Indonesia is only guaranteeing bank deposits amounting to a maximum of Rp2 billion. There is a great risk money will be transferred to Singapore," he said.
Almost all countries were affected by the US financial crisis including China where thousands of factories have closed down and the property sector as the main engine of economic growth was also in trouble, Riady said.
As China's property sector was slowing down, steel plants had stopped operations causing a decline in coal consumption and this was directly affecting Indonesia's coal exports to China.
According to Riady, in the past, the volume of Indonesia's coal exports reached only 40 million tons per year but it eventually rose to 200 million tons per year.
"It (the world financial crisis) surely will have a great impact on Indonesia. The government cannot do much where commodiities are concerned. But it can help labor-intensive industries financially," he said.
The coal price went up from US$60 to US$ 200 per ton, a surge of more than 200 percent, when demand for the commodity rose, he said.
"The most important thing is to maintain financial stability in the country, especially in banking," Mochtar Riady, chairman of Lippo Group, said at a seminar themed "Reinventing Indonesia: The Challange of Indonesia Economy and Business Leaders 2009," here Saturday.
He said the governmwent had better follow the example of other countries and provide a blanket guarantee to assure owners of deposits in local banks that their money was safe.
"Singapore has already issued a blanket guarantee while Indonesia is only guaranteeing bank deposits amounting to a maximum of Rp2 billion. There is a great risk money will be transferred to Singapore," he said.
Almost all countries were affected by the US financial crisis including China where thousands of factories have closed down and the property sector as the main engine of economic growth was also in trouble, Riady said.
As China's property sector was slowing down, steel plants had stopped operations causing a decline in coal consumption and this was directly affecting Indonesia's coal exports to China.
According to Riady, in the past, the volume of Indonesia's coal exports reached only 40 million tons per year but it eventually rose to 200 million tons per year.
"It (the world financial crisis) surely will have a great impact on Indonesia. The government cannot do much where commodiities are concerned. But it can help labor-intensive industries financially," he said.
The coal price went up from US$60 to US$ 200 per ton, a surge of more than 200 percent, when demand for the commodity rose, he said.
