Covid-19 Vaccine and Stimulus are Economic Game Changer, Bank Indonesia Says



Mahinda Arkyasa

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  • Bank Indonesia (BI) senior deputy governor Destry Damayanti. TEMPO/Hendartyo Hanggi

    Bank Indonesia (BI) senior deputy governor Destry Damayanti. TEMPO/Hendartyo Hanggi

    TEMPO.CO, Jakarta - Senior Deputy Governor of Bank Indonesia (BI) Destry Damayanti, said that the Covid-19 vaccination and government stimulus has become the game changer that affects economic recovery in many countries.

    "It is certain that economic improvement will depend on global factor, where the global factor has the same game changer, which are vaccines and stimulus," Destry said ina stakeholders meeting for Acceleration of National Economic Recovery broadcasted online on Thursday, April 1, 2021.

    Destry said that Indonesia has a large market to be developed. However, there were not many progression because of the Covid-19 pandemic. Such condition is apparent from stagnating banking credit application. In addition, third party funds continue to increase due to low corporate needs, accompanied by high company liquidity.

    "Households also continue to hold back on consumption," Destry said.

    BI recorded that the credit disbursement for February 2021 is in the amount of IDR 5,417.3 trillion, which experience a -2.3 percent contraction (year on year). The number is lower compared to the -2.1 contraction recorded in January 2021 (year on year).

    Destry also said that the whole policy of the Central Bank, which includes monetary aspect, macroprudential, and payment system, are being utilized to drive economic recovery momentum through coordination with the govenment and the Financial System Stability Committee.