Ministers Calls Finance Industry to Brace for Fed Rate
29 August 2014 13:18 WIB
TEMPO.CO, Jakarta - Finance Minister Chatib Basri asked all parties associated with the financial industry to brace for The Fed's monetary policy normalization planned for next year. "Hopefully it will be relatively small. But it is likely the Fed will raise its rate by 100 points," he said during the 2014 Indonesia Banking Expo in Jakarta yesterday.
When that happens, Chatib said, the financial sector of all developing countries—including Indonesia—will come under pressure. "Especially if it is done in the first semester. The new government must prepare from now," he said.
Muliaman Hadad, chairman of OJK's board of commissioners, said that the banking sector must anticipate all risks posed by the global economy next year. One precaution that the banking system could do, he said, is to decelerate credit growth. This year, the indication of credit slowdown has occurred at the level of 15-16 percent.
Hadad is optimistic that the banking industry is ready to face the global economic growth due to governance principles that have been implemented carefully. "Our financial industry has gone through plenty of ups and downs. I think we can survive what will happen next," he said.
DINI PRAMITA
