"The world economy is still prone to instability and crisis. This is inherent in the system," Boediono told a discussion forum "Winning in a Turbulent Economy" in Jakarta on Wednesday.
He stated that the crisis could arise anytime, and there was no one who could predict its intensity. There is no single country which has an effective method to overcome the problem.
For this purpose, Boediono, who was the vice president in the 2009-2014 period, added that efforts to strengthen domestic economy should continue to be made.
This could be done through reinforcing coordination among the fiscal and monetary authorities as well as through continuous implementation of structural reforms.
"We have institutions that can coordinate well for monetary and structural reforms. This can reduce the risk of instability or the economic crisis," remarked Boediono.
The professor of Gajah Mada University (UGM), Faculty of Economy, also told a story on how Indonesia was able to withstand the crisis many times because of the existence of appropriate mitigation policies.
He even recounted the rescue efforts made by the government to secure Bank Century in 2008, which were carried out to maintain public confidence in the banking system.
"In our view, the atmosphere at that time was very serious and needed to be addressed. We had one though on not to let the economy fall further, because, otherwise, the economic costs will be huge," he added.
Boediono admitted that he did not think of political risks while making decision, because the policy was taken based on economic considerations.
"We have never thought of the political risk, because the economic practices and the best policies that we take are the best. So it was the only an option. If banks are at risk, do not shut them down at that time," he pointed out.
Reporting by Satyagraha
Editing by Andi Abdussalam, Yoseph Hariyadi
Reporter: antara
Editor: Heru Purwanto
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