The economic crisis in 1998 has hit the Indonesian banking. Some banks even liquidated since the crisis. However, Indonesian banks are now showing better resistance to the crisis.
“Bank Indonesia can be said to be one of the best in emerging markets,” said Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Budiargo Heru, in his speech in LPS birthday party, at the Ritz Carlton, Jakarta.
Heru said the better assessment of growth performance seen banks are still able to maintain performance during the global economic conditions are uncertain.
“The resistance of the Indonesian banking sector is still good enough that can be said indicated by LPS Banking Stability Index which is still in the normal category,” said Heru.
Heru said, because the condition of both the LPS is committed to continue its efforts to keep the banks in Indonesia to stay healthy. “So we believe that close monitoring and strict disciplinary action from the regulator is still very necessary,” he said.