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PERSPECTIVE

Cash is Still The King: Defending Banking in the Eye of Fiscal and Geopolitical Turbulence

Oleh Eko B. Supriyanto
Sumber: Istimewa

Sumber: Istimewa

CURRENTLY, public finance stands on what can only be described as a “fiscal cliff’s edge.” A deficit of 2.92%, a mere 0.08% shy of the statutory ceiling, flashes a warning signal that cannot be dismissed. State revenues are thinning. Dividends from state-owned enterprises, now funneled through Danantara, no longer feed the national budget. Meanwhile, populist spending continues to pour unchecked. On the global stage, escalating tensions between the US–Israel and Iran cast a shadow over the Strait of Hormuz, the artery of 20% of the world’s oil trade. Geopolitics has evolved into a force of profound uncertainty.

So, what must the banking sector do?

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