The Defense System Is Good, The Bankruptcy Of SVB Can Profit Indonesia

Illustration of Rupiah (photo: dock. Antara)

JAKARTA - The closing of Silicon Valley Bank (SVB) by Banking Regulators is considered to be able to benefit developing countries, such as Indonesia.

Senior Economist of the Institute for Development of Economics and Finance (Indef) Aviliani views that currently, Indonesia's financial system stability is still good, so it needs to be maintained so that it is not affected by the closure of SVB because Indonesia has started to strengthen financial system stability since the financial crisis in 1998.

"We should make a profit because when a country experiences a financial crisis, the money can enter Indonesia," said Aviliani quoting Antara.

He said Bank Indonesia's benchmark interest rate was still good, guarding the Financial Services Authority (OJK) against Indonesia's financial system was better than developed countries.

"This means we are lucky because of the case in 1998, our supervisors are much better," he said.

The application of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK) will also further strengthen financial system stability through various new provisions, one of which is through the expansion of the authority of the Deposit Insurance Corporation (LPS).

LPS not only maintains public funds, but also provides solutions. If there is a bank with problems, they can help," he said.

Perception masyarakat pun perlu dijaga agar tidak berdampak terhadap stabilitas sistem keuangan dan perekonomian secara keseluruhan di 2023.

"If people's perceptions are good and contribute to the economy through consumption and investment in a balanced manner, we will not experience an economic crisis," he said.