UNS — The economist of the Faculty of Economics and Business (FEB) Universitas Sebelas Maret (UNS) Surakarta, Lukman Hakim, Ph. D, asked the government to take mitigation action for the real sectors affected by the Covid-19 pandemic. This request was shared in Wedangan Ikatan Keluarga Alumni (IKA) UNS special edition “Post-Pandemic Economic Recovery” on Friday (18/6/2021) live-streamed through UNS official YouTube channel.
Lukman mentioned that real sector mitigation is vital because he observed that two large textile companies in Surakarta have an unstable business because of the Covid-19 pandemic. “Therefore, according to the textbook, the next step that we need to prepared is how to mitigate them (the real sectors),” Lukman said. He added that he does not want the large textile companies in Surakarta that had employed thousands of employees to experience a similar fate with the Lehman Brothers that collapsed in 2008.
In the 2008 crisis, Lehman Brothers, the fourth-largest investment bank in the US, was pronounced bankrupt on 15 September 2008 and triggered a global economic crisis. The bankruptcy affected the world, starting from Europe, Japan, China, Korea, and many other severely affected countries, leading to a free fall of stocks traded in the capital market.
“This is what we call ‘too big to fail’. Giant companies’ failure is very dangerous. We saw in 2008, as a big country US let Lehman Brothers fell. We never predicted that the collapse of a giant financial institution would have a terrific impact. If it was bailed out, maybe it could survive,” Lukman explained.
To the Rector of UNS, Prof. Jamal Wiwoho, Chairman of the Board of Commissioners (DK) Financial Service Authority (OJK) RI, Prof. Wimboh Santoso, Deputy Governor of Bank Indonesia (BI), Doni Primanto Joewono, and the Chief of Indonesian Business Association (Apindo), Dr. Hariyadi Sukamdani, Lukman reminded that the failure to take mitigation for companies in ‘too big to fail’ category will have broad impacts and long recovery efforts.
“Therefore, it is vital; I underline that to prepare mitigation for ‘too big to fail’ as a preparation for a situation that might last a while. People predicted that by the end of this year, Covid-19 would get better, but some predict that it might worsen. But the financial sector that has moved required a comprehensive solution,” Lukman concluded. Humas UNS
Reporter: Yefta Christopherus AS
Editor: Dwi Hastuti