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February 20, 2025 | 12:25 pm
TEMPO.CO, Jakarta - The call to withdraw savings from Indonesia's state-owned enterprise (BUMN) banks or State-Owned Banks Association (Himbara) accounts is currently causing a stir on social media. This is related to the formation of the Sovereign Wealth Fund, Daya Anagata Nusantara (Danantara) Investment Management Agency by President Prabowo Subianto.
Based on Tempo's observation, Danantara became a hot topic or trending topic on X (Twitter) as of Thursday, February 20, 2025 at 10:00 a.m. WIB (Western Indonesian Time). There were about 87,700 tweets or posts made by netizens related to the sovereign wealth fund.
"Suspicious and terrifying if Danantara cannot be inspected by the Indonesian Corruption Eradication Commission (@KPK_RI) and the Supreme Audit Agency (@bpkri) especially with former corrupt ex-convicts of BI (Bank Indonesia) there. Let's withdraw our money from state-owned banks," wrote one X user @dr_alt*********, Thursday, February 20, 2025.
So, what are the impacts of a mass withdrawal from banks?
The Various Dangers of Mass Withdrawals from Banks
As cited by repo.darmajaya.ac.id, mass withdrawals or rush money is a movement to collectively withdraw a large amount of money from individual savings, or even some take all the money from bank savings until none is left.
"Rush money", "panic bank", or also known as bank run can occur at any time, stemming from the bank's health, economic conditions, to the loss of customer trust. Below are some of the impacts of massive withdrawals:
1. Banking Crisis
Quoting repository.metrouniv.ac.id, a mass withdrawal from a bank can trigger a banking crisis when it spreads to other banks (contagious effect).
The banking crisis phenomenon has been a global issue and has occurred several times, both in developed and developing countries, especially since the financial liberalization era in the 1980s and 1990s.
Then, according to the International Journal of Business, Economics, and Law or IJBEL (2021), withdrawing large amounts of money will cause banks to lack cash, eventually leading to bankruptcy. The bank will face default because customer deposits are actually used for credit distribution.
The direct impact of "rush money" is that banking institutions will experience a significant liquidity crisis, followed by a shortage of overall economic liquidity.
This situation is compounded by a surge in interbank money market interest rates of up to hundreds of percent.
2. Customer Losses
The "rush money" trend could also hurt customers, as early withdrawals can significantly reduce their funds' value.
Those who follow such calls may unknowingly benefit certain groups or provocateurs exploiting exchange rate and stock index fluctuations.
3. Economic Crisis
The impact of "rush money" will also spread to endanger other business actors and the economy due to disrupted money circulation. The government will then attempt to prevent its further impact, fearing a more severe economic recession that may take years to recover from.
The government may also take comprehensive stabilization and banking reform measures. However, if government guarantees are made when finances are insufficient, it can trigger a very heavy fiscal burden.
The government would be forced to seek other sources of funding, such as debt, which would ultimately increase the national debt burden.
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