Bank Indonesia: 10-Year Crisis Irrelevant for Indonesia
22 February 2018 16:50 WIB
TEMPO.CO, Jakarta - Bank Indonesia (BI) Governor Agus Martowardojo believes the cycle of 10-year economic crisis is irrelevant for Indonesia today. He argued the government and the authorities related to the economy have a strong commitment to maintaining the macroeconomic stability.
“Look at the economic fundamentals; from the economic growth, inflation, the balance of payments, fiscal, foreign exchange reserves, and the running transactions, all in good condition,” said Agus at Perbanas Institute, Jakarta, Wednesday, 21 February.
Agus said Indonesia had the Law of Financial System Crisis Prevention and Handling (PPKSK Law). He said it shows Indonesia's readiness to face the economy systemic risks.
In addition, the government is also quite cautious about foreign debt. It made the Indonesian economic resilience system better, he said.
Agus admitted Indonesia's economy is strongly influenced by global conditions. The global economic crisis in 2008 that began with the Supreme Mortgage in the United States clearly has an impact on the domestic economy.
However, the condition of world economy began to improve from 2015 until now. World economic growth grew in the range of 3.6-3.7 percent after the crisis; it is even expected to continue to 3.8 percent.
Agus optimistic that Indonesia's economy will be maintained along with the improved export commodity prices in the range of 22 percent. Bank Indonesia predicts world trade volume will rise from 4 percent to 4.5 percent.
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