The story of RI Boediono can pass the crisis

Jakarta – Since independence, Indonesia has indeed experienced many crises. Starting from the post-independence crisis of 1945 to 1950, the crisis of 1950-1957 resulted in a reduction in the value of the currency to reduce the amount in circulation.

Then come the crisis of 1959-1967, the crisis of 1980, the crisis of 1997-1998 and the crisis of 2008. The former governor of the Indonesian Bank Boediono (BI), Boediono, spoke of experiences related to the Indonesia who had managed to overcome the great and mini-crisis. Especially at the time of the leadership of Megawati Soekarnoputri and the leadership of Abdurrahman Wahid or Gusdur.

"At the time of the administration of Megawati, Indonesia had just gone through a crisis, it has not yet taken its time.But the economy of Pak Gusdur is still vulnerable, it is still possible to get up, "said Boediono during a discussion at the Jakarta Theater on Wednesday (28/11). 2018).

He explained that then the government was actually working hard to restore the confidence of economic players in decline due to the currency crisis that occurred between 1997 and 1998.

"At the time, the confidence of economic actors in the solvency of public finances was very low, it concerns the people of their country who did not want to invest because they doubted the burden of 97-98 crisis, "he said.

In addition, during the period 1997-1998, it was not only a liquidity badistance of the Bank of Indonesia (BLBI), but also a recapitalization of the big banks. Secondly, the crisis period in the state expenditure budget (APBN) is so unhealthy that it leads to even very weak economic growth.

But with the economic improvement slowly improving and starting to grow. Indonesia is waiting for the entry of economic actors again. "Restoring that confidence with credible measures.That hurts, as if the expenses were felt useless, we were reducing it to nothing, it was to show that we really wanted to maintain the sustainability of our national budget", a- he added.

He said that after the economy was favorable and stable, controlled inflation began to appear. Then comes a license issue that is loosed. The benchmark interest rates in Indonesia have begun to be adjusted to prevent foreign funds in the country from escaping.

Boediono said the period 2001-2004 was a period of real interest rates, as the situation of bank capital and national inflation began to improve. The government now hopes to improve the economy and increase investment. (kil / DNA)