Boediono's Reasons To Give FPJP For Century Bank

Bank Indonesia Regulation changes discussed in the meeting of the Board of Governors of Bank Indonesia (RDG-BI) in order to adjust the current state of Indonesian banks. Provision of Short Term Financing Facility (FPJP) to Bank Century was considered the right decision. Because, if it is not done then the situation will be more complicated and the impact on the existing banks in the country.

Thus it is submitted by the former Governor of Bank Indonesia (BI) Boediono as a witness on the alleged corruption FPJP facilitation and determination of Century Bank as a bank failure, a systemic effect, at the court of Corruption, Jakarta, Friday, May 9, 2014.

"This is bad situation if there is one bank bankrupt as Century, and there will be an impact on the raid on banks in Indonesia, " Boediono said .

The statement in line with the questions asked by the prosecution Commission, KMS Roni asking when economic conditions change the Board of Governors of the Central Bank Regulation requirements FPJP administration. Boediono FPJP needs to be given as to avoid the feared crisis like 1998.

"This is worrying as the 1997-1998 experience in crisis situations many outstanding issues which banks experiencing liquidity problems where there is no blanket guarantee, because it closes the bank at the time the risk is very unusual at all for our economy, " he said .

Furthermore, he said, changes in Bank Indonesia Regulation (PBI) which is discussed in the meeting of Board of Governors in order to adjust the current banking conditions. "We want a rule that can accommodate all inclusive that can handle what's in our eyes, the collapse of Bank Century," Boediono said .