Our banking industry

Our banking industry

Exactly 13 years ago, the government offered the 1988 October Package, which stipulated light requirements for the operation of banks. At that time, a person could open a bank for only Rp 10 billion. Two or three years later, new banks mushroomed. Some conglomerate owners even owned three or four banks at the same time.

Eight years later, several new banks closed down. The government had begun to liquidate banks with little hope of being saved. This became worst when the economic crisis set in, followed by the political crisis in 1998.

Hundreds of trillions of rupiahs were provided by the government to save the banking industry from the crisis, both through Bank Indonesia's emergency liquidity credit (BLBI) and the recapitalization program. Some banks were liquidated and others merged. Today, the number of banks is half of that in the past.

We do not want the second phase of recapitalization to happen. The Rp 425 trillion taken from the people's money for the recapitalization two years ago is enough. The people will suffer more if the program is implemented again.

In any case, given to the 1988 October Package, we must save our banking industry, not by allocating trillions of rupiahs, but by making the business atmosphere nation conducive, calm and safe.

-- Republika, Jakarta