Economist Warns Unilateral Account Freezing Could Erode Trust

Executive Director of the Center of Reform on Economics (CORE) Indonesia, Mohammad Faisal, has warned of significant risks behind the freezing of the account of a coordinator of the Pati United Community Alliance (AMPB) by Bank Mandiri at the order of law enforcement. Faisal said the bank needs to anticipate the knock-on effects of the account freeze.

“This relates to trust, and the banking business is a business of trust. Trust from consumers in the banking institution where their money is deposited,” Faisal said when contacted by Republika in Jakarta on Monday (24/8/2026).

Faisal said customers or account holders who no longer feel safe will have an impact on the bank’s performance. Faisal said banks cannot afford to take customer trust lightly.

“Trust in the bank and also the bank’s performance, especially if a rush occurs. Now this is what we do not want because it will disrupt stability in the financial sector,” Faisal said.

According to Faisal, the government must also evaluate its interventions to suppress protests and demonstrations that involve the banking sector. Faisal said the government should think carefully when making a policy so as not to cause major repercussions.

“The government should also evaluate this because the intervention carried out has a far greater impact than predicted, which the government cannot control if a rush were to occur,” Faisal continued.

Faisal reminded that a rush would affect stability in the financial sector. Faisal expressed hope that such interventions would not be carried out against other state-owned banks (Himbara) because it would increase the threat of a much more massive rush.

“I think it will also affect public trust in state-owned banks under government control,” Faisal said.