BI Focuses on Policy to Strengthen Economic Stability

Jakarta, MINA — Bank Indonesia (BI) remains consistently committed and focused on a short-term policy to strengthen economic stability, primarily to stabilize the Rupiah exchange rate.

Hence, the BI is ready to adopt further policies that are pre-emptive, front-loading, and ahead of the curve in facing any new direction of the Fed`s and the European Central Bank`s policies in the upcoming Board of Governors` Meeting on June 27-28, 2018.

In his statement received by Antara here on Friday, BI Governor Perry Warjiyo noted that further policies may take the form of increasing interest rate with relaxation of the loan-to-value policy to boost the housing sector.

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In addition, double intervention, easing liquidity, and intensive communication will continue.

The BI, government, and Financial Services Authority are also consistently forging closer coordination to strengthen stability and boost growth.

BI believes that Indonesia`s economy, primarily the financial asset market, will remain robust and attractive to investors, including foreign ones.

With maintained investment, economic stability is also expected to be maintained, and the economic growth will increase.

The House of Representatives is looking for effective policies apart from raising the benchmark interest rate by BI to boost the rupiah.

The national currency has weakened over the past months, and the Central Bank has raised its benchmark interest rate to help maintain the rupiah`s stability.

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Economic fundamentals

“We also hope an increase in the strength of economic fundamentals in the micro scale,” deputy speaker of the House Taufik Kurniawan earlier remarked here on Thursday.

Kurniawan revealed that BI had taken steps by raising its benchmark interest rate, adding that the step was a serious signal.

Hence, several programs have been implemented to strengthen the economic fundamentals, such as by increasing social aid in the form of Family Welfare cards, he added.

The social aid can improve the welfare of the people in facing a possible economic slowdown, the PAN politician noted.

Meanwhile, Gerindra lawmaker Heri Gunawan opined that substantial correction in the country`s economic structure is needed to boost economic growth. (T/RS5/RS1)

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Mi’raj Islamic News Agency (MINA)