We must be aware and appeal to the management of the financial industry to remain cautious of its effects."Jakarta (ANTARA News) - The Indonesia Financial Services Authority (OJK) cautioned the financial industry regarding the impact of the Greek crisis, as it cannot forecast how long it will last, Head of OJK Board of Commissioners Muliaman D. Haddad stated.
"It is having a global impact. I am optimistic that it is only temporary, but we have to anticipate how long it will last. We must be aware and appeal to the management of the financial industry to remain cautious of its effects," Haddad remarked here.
He pointed out that the standard procedure to anticipate this crisis is to maintain a close market watch and urge the financial industry to mitigate the current condition.
Moreover, he stressed on the importance to ably manage the risks to better face this situation.
Haddad believes that the Indonesian banking sector will not suffer liquidity problems due to the impact of the Greek crisis, as the condition was the result of global expectations regarding the current situation in Greece.
Meanwhile, President Director of Indonesia Stock Exchange (BEI) Tito Sulistio has expressed concern over the negative psychological impact of the Greek crisis on investors.
"The current condition in the capital market, which tends to be uncertain, is believed to be caused by Greece. The Chinese stock market has dropped around 30 percent. To me, this is what we fear," he stated here on Tuesday.
He believes that the Greek crisis will only have a short-term impact on the investors at home, as the performance of listed companies is still relatively positive despite an economic decline.
(Reported by Dyah Dwi Astuti/Uu.A071/INE/KR-BSR/O001)
Editor: Priyambodo RH
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