The story of Boediono on the rescue of Century Bank

JAKARTA, KOMPAS.com – The case of Century Bank in 2008 was so much debated because the bailout process had political elements.

Eleventh Vice President Boediono, who was then Governor of the Bank of Indonesia, also described the rescue process of Century Bank, which he said was conducted in an open and transparent manner.

"The process of making an open and transparent decision in the discussion has been widely disseminated.No discussions have been discussed by the central bank.The atmosphere at that time was very serious," said Boediono to Jakarta Wednesday (28.11.2018).

In addition, Boediono said that he did not expect a very long extension of the bailout proceedings of the bank Century Bank. At the time, he thought only in the Century Bank case that it needed to be treated seriously in order to avoid an economic crisis comparable to that of 1998.

Read also: Here's how to make sure that the Bank Century case does not repeat itself

The reason is that if no immediate action is taken, the costs are very high. It is possible to begin to reduce unemployment and improve the quality of life of the community.

"At that time, my friends and I had never thought about political risk, the risk of economic risk if we knew (political risk), we did not know what policies we were leading. something that we consider in terms of the practices and the economy that we adopt. total guarantee"said Boediono.

The system global guarantee is a 100% guarantee policy for client funds in banks. In 1998, this policy was not implemented when the government closed 16 banks and aggravated the 1998 crisis.

In 2008, the decision to save Bank Century was taken in the Ministry of Finance building through the KSSK meeting, following the letter from the Governor of the Bank of Indonesia (BI) number: 10/2 / GBI / DPNP / secret published November 20, 2008. At the time, BI was ensuring the bank Century failed to clear and threaten the banks. After that, BI indicated whether Century Bank should be considered a bankrupt bank with a systemic impact.