OJK: The Indonesian Economy Does Grow Positively, But Risks Can Municipate

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar. (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said that the Indonesian economy is currently growing positively, but still must not be careless amid the global economic turmoil which is predicted to continue.

"We are prepared to anticipate entering these years. Don't assume that Indonesia's growth remains above five, even for the last time it has reached a record 5.72 percent for the third quarter we have to be grateful, but the lessons learned earlier said we must not be careless," he said at the CEO of Networking 2022 in Jakarta, Thursday.

Lesson learned or a lesson that can be learned by Mahendra is the occurrence of bond rush in England, the bankruptcy of the FTX crypto exchange, causing it to fail to pay Legoland from South Korea.

According to him, the risks that will arise in the future can arise from anywhere.

Based on previous experience, Mahendra continued, systemic risks usually come from banks, both commercial banks and investment banks. However, throughout this year alone, the risks that arise are not from banks.

"First, how is the policy of taxing fiscal a country, namely the UK, then causing a crisis in interest rates and also trust in government bonds and then causing bond rush. It was not imagined in the past that the bond rush could come from fiscal policies, especially in developed countries," he said.

Furthermore, bankruptcy is one of the largest crypto markets in the world, namely FTX with its FTT products. The issue of governance, transparency, and supervision can actually escape investors, venture capital, investment fund or hedge fund whose name is extraordinaryly large and its reputation is so great in the world.

"We think that such an investor must have done an extraordinary due diligence. It turns out that there are three series of investments in FTX, so everything is gone, so imagine," said Mahendra.

Finally, debt securities amounting to 205 billion won or the equivalent of 144 million US dollars for the Korean Legoland project were not paid on the maturity date of September 29, 2022. The failure to pay by Legoland resulted in corporate bonds rush throughout South Korea.

"This is what we experienced. So, it's not just the perfect storm situation, but risk can come and have come from different and unexpected side," he said.