In addition to sustaining economic conditions, financial sector stability was also maintained, which is inseparable from a number of policy measures instituted by the Government and Bank Indonesia to overcome the effects of the global crisis in the final quarter of 2008, followed by additional measures implemented in 2009.
The financial sector, which was placed under significant pressure in November 2008 with the Financial Stability Index (FSI) peaking at 2.43, gradually recovered in December 2009 with FSI dropping to 1.91; below the critical indicative level of 2.0. Direction of banking policy Learning from our extensive experience with crises, Bank Indonesia introduced four incentive and disincentive based policies in 2010. 1.