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Boediono denies claims that RI economy in 2008 was in critical state

Vice President Boediono has denied former vice president Jusuf Kalla's claims that he said Indonesia's monetary conditions were in a critical state during a meeting with him on Nov

The Jakarta Post
Jakarta
Fri, May 9, 2014

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Boediono denies claims that RI economy in 2008 was in critical state

V

ice President Boediono has denied former vice president Jusuf Kalla's claims that he said Indonesia's monetary conditions were in a critical state during a meeting with him on Nov. 20, 2008.

Boediono, then Bank Indonesia (BI) governor, attended a meeting with then Finance Minister Sri Mulyani Indrawati at Kalla's office to discuss the Indonesian economy. During the meeting, Boediono said, he only explained to Kalla that Indonesia's economy was under pressure.

Boediono insists that he did not say the economy was in critical condition, as Kalla claimed when he testified as a witness for former BI deputy governor Budi Mulya in the Bank Century case on Thursday.

"There were a lot of people at that meeting, including officials from the Finance Ministry and also some BI deputy governors. However, I don't remember what the other minister said, but I do remember that I told everyone that Indonesia's monetary situation was under pressure," Boediono said when giving testimony at the Jakarta Corruption Court on Friday.

One of the reasons for his claim, he added, was because at the time the rupiah had weakened from 9,000 against the US dollar to 12,000 per dollar in a very short period of time. 

Boediono said Bank Century's situation was not brought up at the meeting because he feared the news would spread that the bank had liquidity problems, which could have caused a panic within the hour.

"[We didn't bring up Bank Century] because it was a large meeting and it would have been equivalent to committing suicide, as the news would have spread extremely quickly," he said. (fss)

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