A Bank Run to Subvert the Economy

The thinking of those calling for the withdrawal of savings from banks is short-sighted. They have been blinded by the increasingly heated dispute in the run up to the Jakarta gubernatorial election, which is now involving issues of race and religion, and which has spread into the banking sector. This agitation is foolish because it could trigger a financial crisis.

Finance Minister Sri Mulyani was understandably furious about the appearance of a misplaced propaganda spreading on social media. She even asked the police to arrest the troublemakers seeking to justify their political aims by any means. The problem is that the banks are the most important basis of the economic system. If the banks are destabilized, the economy will grind to a halt because the cycle of investment will be halted and the engine of growth will stall.

November 29, 2016