Bank Indonesia: Infrastructure Loans Boosts Economic Growth

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Petir Garda Bhwana

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  • Logo of Bank Indonesia. REUTERS/Iqro Rinaldi/File Photo

    Logo of Bank Indonesia. REUTERS/Iqro Rinaldi/File Photo

    TEMPO.CO, Jakarta - Bank Indonesia (BI) stated that one of the strategies to boost the country’s economic growth is through the availability of adequate infrastructures, which is essential in connecting critical sectors such as economic areas, tourism spots, industrial areas, and production hubs. 

    BI senior deputy governor Destry Damayanti said in order to accelerate Indonesia’s infrastructure sector’s financing, the bank will optimize a number of its policies. One of them is through an accommodative macroprudential intermediation ratio (RIM). 

    “Other than that, we will push for the issuance of commercial securities and the use of hedging instruments all while we also assist regional administrations,” said Destry in Jakarta on Monday, December 2. 

    Destry argues that accelerating the financing for infrastructures is crucial amidst a global economic slowdown and uncertainty. This has yet to consider the low infrastructure to GDP ratio that hovers at 43 percent which is lower than the average of other developing nations. 

    Bank Indonesia’s attempt to spark infrastructure financing growth was also done by hosting an event entitled “The Pivotal Role of Infrastructure Financing to Advance Sustainable Growth.”

    DIAS PRASONGKO