SVB Kolaps, President Director Of BRI: Indonesia Far From Crisis Epicenter

BBRI AGMS (Photo: Doc. BRI)

JAKARTA - Silicon Valey Bank (SVB) was declared a failed bank on Friday, March 10.

Regarding the impact of the collapse of SVB into the banking industry in Indonesia, the President Director of PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) Sunarso revealed that the condition of the Indonesian banking industry is currently in a solid condition and has minimal risk exposure due to the collapse of one of the banks in the United States, Silicon Valley Bank (SVB).

"Banking in Indonesia, especially BRI, is far from the epicenter of the crisis. This is reflected in one of the strong capital and adequate liquidity," he told the media, Thursday, March 16.

Sunarso explained, until the end of 2022, CAR BRI (consolidated) was at a very strong level of 25.54 percent and LDR (consolidated) was maintained at the level of 87.09 percent.

Sunarso also reminded again that BRI had previously managed to overcome the crisis many times, from the monetary crisis in 1998 to the crisis caused by the COVID-19 pandemic.

He added that currently, Indonesian banks are very obedient in the implementation of BASEL in terms of risk management, so that capital formation is also quite thick.

On the other hand, OJK's supervision of banks has also been very good, in addition, Bank Indonesia also continues to support liquidity fulfillment.

"Currently we still have to be optimistic but not reckless and not reckless. So we still carry out the principles of good corporate governance, good risk management, I think that's the key. So optimistic but still have to be careful and we have all of these tools, especially in banking," concluded Sunarso.