"If the government at that time did not move quickly to salvage one of unhealthy banks in 2008, the economic crisis in the past 10 years may hit Indonesia again," Yudhoyono said.Jakarta (ANTARA News) - Indonesian President Susilo Bambang Yudhoyono said the bailout case over Bank Century in 2008, which is now known as Bank Mutiara, was a political cost to save the country`s economy.
"If the government at that time did not move quickly to salvage one of unhealthy banks in 2008, the economic crisis in the past 10 years may hit Indonesia again," Yudhoyono said, here on Friday.
Nonetheless, the government should pay high political cost as the consequence of a salvage action by disbursing Rp6.7 trillion (US$730.08 million) to bail out the troubled bank.
"It costs so expensive that caused the government very busy with the problem for a year," he said.
The controversy surrounding Bank Century in 2008 emerged following the government`s decision to disburse Rp 6.76 trillion (US$730.08m) to bail out the troubled bank.
Yudhoyono said the banking situation in the world played an important role to determine the condition of economy in Indonesia.
"In Indonesia, the economic crisis in 1998 to 1999 occurred due to the banking problem. And so the world crisis in 2008 and Europe crisis in 2011," he said.
The 2008 economic crisis in the US stemmed from the falling of some world class banks, forcing the US government to spend US$100 billion to overcome the problem.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
