Bank Indonesia Governor Highlights Policies in IMF-World Bank Meeting
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12 October 2023 15:18 WIB
TEMPO.CO, Jakarta - Bank Indonesia Governor Perry Warjiyo highlighted the importance of the central bank's policy mix during the annual meeting between the International Monetary Fund and the World Bank. The series of meetings, including between G20 Countries' Finance Minister and Central Bank Governors, is being held in Marrakesh, Morocco, from October 10 to 15, 2023.
"The central bank's policy mix is necessary to avoid depending on a single policy instrument and instead combining various regulations," Perry said in a written statement received on Thursday, October 12.
According to Perry, the need for a policy mix includes regulations on the interest rate, macroprudential, and exchange rate stability; and the explanation of Indonesia's strategy for facing the inflation sourced from both supply and demand with a strong coordination between monetary and fiscal authorities.
Additionally, the BI Governor also highlighted the measure to manage the fragmented global condition by welcoming investment opportunities and downstream industries to increase the natural resources values. "And continue to boost MSMEs development through cross border payment to improve the connection between MSMEs with a wider market," he said.
Meanwhile, the global economy shows improvement, albeit slow and unequal. In response, the finance ministers and central bank governors will soon agree on the Global Policy Agenda with the theme of "building shared prosperity and collective resilience".
As a measure to maintain stability and increase prosperity, decision-makers are expected to focus on suppressing inflation, maintaining financial stability, building fiscal buffers, and promoting medium-term sustainable and inclusive growth. IMF also mentioned the necessity of a mutual effort to boost the global financial security network.
DEFARA DHANYA PARAMITHA
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