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View all search resultsWhile Indonesia may have avoided any direct fallout from the bank failures in the United States and Europe earlier this year, local financial institutions face the same difficulties stemming from the lack of good governance that was at the root of those collapses.
Rising commodity prices because of the conflict between Russia and Ukraine threaten to hinder Southeast Asian countries’ recovery from the pandemic, which in turn can heighten the risk of political and economic instability, including to Indonesia.
The Financial Services Authority (OJK) might have the mandate as current laws place nearly all financial entities under its regulatory purview. But to extend a Maiden-Lane-like facility, the OJK needs to swiftly create a massive liquidity cushion for the firm in need.
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