JAKARTA - The new authority of the Deposit Insurance Corporation (LPS) to place funds in banks is expected to help banks maintain their health. This was stated by Minister of Finance Sri Mulyani Indrawati in relation to Government Regulation (PP) No.33 / 2020 concerning tthe LPS’ authority in imposing measures to deal with financial stability which was issued recently.

According to Sri Mulyani, the regulation was part of the government's effort to prevent and handle crisis in the banking sector amid the COVID-19 pandemic. "We also prepare for any urgent situations and require us to deal with the issue of handling failed banks," she said in the LPS webinar yesterday (16/9).

Indonesia, she said, had a pretty good track record in handling failed banks during the economic crisis. (LK/AR)