TEMPO.CO, Jakarta - The national banking sector is on the lookout for possible impacts from the crisis happening to Deutsche Bank (DB).
Bank Rakyat Indonesia's (BRI) finance director Haru Koesmahargyo said the DB crisis will affect Indonesia's financial markets.
Haru said what's happening to DB is similar to the global economic crises in 1999 and 2008. Today's crisis, he said, is triggered by a bubble—caused by worldwide central banks' low-interest policy, some even applying zero or negative rates.
Heru said now is the time to migrate investments from the financial sector to the real sector, which is relatively safer.
"We need to continue growing and support a realistic economic growth towards the real sector," he said.
The Financial Services Authority (OJK) is also monitoring the development in DB, which currently has 42 percent share in Indonesia's custodian market.
OJK's papers stated that one of DB's main cause for problems is the lack of integrity, as 6 of its managers have been arrested for alleged derivative frauds in Italy. DB is also facing a US$11.4 billion lawsuit from the US Department of Justice for selling subprime mortgages that triggered the 2008 financial crisis.
According to the Express, DB's stock value had dropped 52 percent all year. The German state bank has also announced massive layoffs.
Despite what's happening, Vice President Jusuf Kalla said the DB's crisis threat is not going to big as big as what the market fears.
The Deutsche Bank's assets are worth €1.8 trillion with equity of €67 billion. The International Monetary Fund (IMF) names DB as the biggest contributor to the global financial market's systemic risk.
KHAIRUL ANAM | FERY FIRMANSYAH | PUTRI ADITYOWATI | GHOIDA RAHMAH
