When Connectivity and Truth Became Ubiquitous
Well, like my previous article, i like to share and analyze about economy and social. Here we go. Entering 2018, the pressure on global liquidity is likely to come from policy normalization process of global banks. As we know together that the plan of The Fed (Federal Reserve) about rate hikes. The Fed is expected to hike its Fed Funds Rate three times in 2018. And from Indonesia, the banking sector ended 2017 in a less than ideal shape. Loan growth continued to slow, squeezed by weak demand and bank's consolidation of lending capacity due to high non-performing loan (NPL).
Multifinance sector face the same problem i think, that problem has to be solved quickly, how to decrease NPL and how to improve the quality of their assets. If Banks and Multifinance can decrease their NPL, i do believe Banks and Multifinance have spare cash in doing expansion. By the way, in 2018, from the company that i work for, we have a plan by the way to make expansion in sharia. Expansion to take more profit! That's how business works. Managing the NPL is the key to continue the business. Let's see what happened in 2017. For example, the bankruptcy of Seven-Eleven (SEVEL) which has non performing loan amounting Rp 597 billion.
Well, by the way, let's forget about NPL. Let's talk about financial stability as an outlook in 2018. Indonesia's central Bank, Bank Indonesia (BI) will continue to focus its policy mix on maintaining macroeconomic and financial stability, which is a basic prerequisite for creating more sustainable economic recovery. Honestly, this is the real jobdesk of our Central Bank (Bank Indonesia) to maintain financial stability. Economic growth is not in BI's area by the way. Then, BI also maintain exchange rate stability in line with its fundamental values and continue the process of deepening the financial market. BI will strengthen monetary operation by managing bank's liquidity to help stabilize interest rates in the money market.
I write this article to tell about how connectivity and truth worked in the same way, the both became ubiquitous. For example , did you remember about what happen in monetary crisis in 1998? We didn't listen the truth. Because of what? Some people tend to not admit failure! When the Leader goes like this, then the report that he receives is not the actual number, the report that they make is ABS (Asal Bapak Senang in Indonesia Language). Ok, i'll continue my argument about what happened in 1998. In 1998, before the devastating monetary crisis all the economic expert in Indonesia claimed that our economic fundamental were strong and they all guaranteed would not be hit by crisis. With the assurance of economic expert (some of em maybe get the PHD title), President Soeharto was left feeling secure.
In 1998, i think that debt was the main cause of the problem by the way. In 1998 crisis the main source was private debt which exceeded the ability to pay its obligations, by abusing banking facilities provided by Central Bank (Bank Indonesia). It was 20 years ago, now 2018. Oke, but let me remind you something. In the current 2018 it's in fact the country's debt that has the potential to become the source of crisis as it rises sharply meanwhile state revenues are practically stagnant. In 2017, tax revenue only reached 88,4%. Indonesia's foreign exchange debt (public and private) at the end of 2017 was USD 347 billion or grew by 9,1% (year on year), but the growth of the country's foreign currency debt grew by 14,3%. This debt foreign currency ratio is 34% from GDP. These foreign currency debts are generally to finance projects that will eventually generate rupiah so it's necesarry to be aware of a mismatch!
In the political side, we can see how connectivity and truth became ubiquitous. Let me remind you about Ahok's. Ahok as we know, holds double minority as a christian and as a chinese descent (tionghoa). He lost the election in 2017 and was later sentenced to two years in prison in the blashpemy case. I had discussed this in my previous article. Ahok was accused of something unrelated to his governing skills. In 2017, there were so many banners, comment in social media, sermons and other occassions, for NOT voting for a non Muslim Indonesian as a leader. So, it means, we don't need skill as long our identity match with the majority.
Oke, i don't mind. However, the principles of citizenship is what the founding fathers emphasized in the constitution, that every citizen is equal before the law, has the right to vote and to be elected for public office! By the way, i want to give a lyric about majority and minority, i take the lyric from Greenday's song "minority". The lyric goes like this "i wanna be the minority, i don't need your authority, down with the moral majority, cause i wanna be the minority.....one light, one mind, flashing in the dark".
What's the point of this lyric? What's the relation of this lyric and the story about Ahok that i had told. Well, let me explain it. Simple. Sometimes, the idea of democracy is good, but sometimes it's not. Why? Because in democracy , the majority determines which is "right". In Ahok's case & another case, the majority of identity and idea, they're not always right and they don't represent "right". Still, i love the idea of meritocracy. Why? Because the right answer is the true boss and it doesn't matter where it comes from or its popularity. Even the uneducated one said something, which is true, it's always true. It's not about majority and minority anymore.
Okee in this article i want to share about how connectivity and truth became ubiquitous, i want to talk about economic outlook in 2018, Fintech and etc with the short article of each title, i write in English and Indonesia language.
Milenial in e-conomic