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Bank Indonesia Explains Steps Needed to Maintain the Economy

Translator

Editor

4 May 2016 14:16 WIB

Bank Indonesia Governor Agus Martowardojo. ANTARA FOTO

TEMPO.CO, Jakarta - Bank Indonesia Governor Agus Martowardojo said that President Joko "Jokowi" Widodo will have to face serious challenges following several external pressures experienced by the country's economy back in 2015, including the recovery of the United States economy and the Chinese economic slowdown.

Agus underlined that the Chinese economic slowdown had caused significant effects on the Indonesian economy, including the decreasing commodity prices which in turn affect Indonesia's export performance. "Indonesian export structure is bases on natural resources," Agus said back in April 28, 2016.

Agus added that Indonesia is one of the developing countries with the most stable economy during the global economic slowdown, which is indicated with the stable 4.7 economic growth rate and four percent inflation rate. "The Rupiah exchange rate also gradually [stabilize]," Agus said.

Agus stated that later in the future, it will be imperative for the government to continue the ongoing structural reform. Agus explained that the structural reform includes issuing economic policy packages, and applying coordination between the fiscal and monetary sector. Agus added that consistent, prudent and timely implementation of macroeconomic policies is also important.

For the industrial sector, Agus hoped that the government would continue carrying out reforms on the food sustainability, energy, and water sector, which will support agricultural productivity. Agus asserted that food availability is crucial in keeping the inflation rate stable.

ADITYA BUDIMAN



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