Bank Indonesia: Domestic Stimulus Helps Domestic Economy

TEMPO.CO, Jakarta - Senior Bank Indonesia (BI) Deputy Governor Destry Damayanti stated that government spending stimulus can help to strengthen the domestic economy to prevent the effects of global economic pressure.

Destry said on Friday, February 2020, that the stimulus can also maintain economic performance to keep economic growth rate within the 5% (fiver percent) mark for 2020. "The economic [growth] can be lower than 5 percent if we did nothing. But if we have a stimulus, the effect can be mitigated," Destry said.

Destry hoped that the mitigation effort can strengthen financial market players' trust following the Coronavirus inspection, which started to spread to the United States and Europe.

"Insha Allah, we will not slump, as long as our future policy is clear," Destry stated.

The government has attempted to maintain domestic economic performance to remain unaffected by global pressure as a result of the Coronavirus Covid-19 infection within the last three months.

The stimulus promulgated by the government through fiscal instruments is, among others, to channel spending especially capital expenditure as well as social aid since the beginning of 2020.

The government also provides incentives for the tourism sector by providing discounts for flight tickets to maintain the tourism sector.

Previously, Bank Indonesia had also issued a stimulus to maintain economic performance from the monetary aspect through the lowering of the reference interest and relaxing macroprudential policy.

Furthermore, through coordination with the government, the Central Bank also encourages the acceleration of social aid channeling.

ANTARA