REPUBLIKA.CO.ID, JAKARTA –- The Chairman of the Board of Commissioners of the Deposit Insurance Agency (LPS), Heru Budiargo, ensured that currently no bank was closed because of the economic slowdown. He said that the Indonesia economy is still in a good condition.
“At this time, I confirmed that there are no banks closed, or almost closed, or failed,” he said, in Jakarta, Thursday (13/8).
Heru explained that nothing that can cause excessive volatility in the banking sector after the "stress test", although there was pressure in the non-performing loans (NPL).
"We certainly did a stress test and formulated the worst assumption, but it was obvious that our banking conditions is fairly well," he said.
In the first half of 2015, there were only two rural banks (BPR) which was forced to close due to internal problems of moral hazard. It was not caused by the economic slowdown.
“There were two rural banks whose the assets were less that Rp 10 billion, and were closed. One bank was in Sumatra and another bank was in Central Java. The case of closing was not because of the economy but internal moral hazard,” he explained.
He asked people to remain calm in facing the weakening of rupiah and the economic slowdown. There was still no indication that the pressure will give impact on the national economy.
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