Bank Indonesia: A Better Direction For 2022 Economic Recovery, Synergy And Key Innovation Awakening Optimism

Governor of Bank Indonesia Perry Warjiyo (Photo: screenshot of BI Youtube)

JAKARTA - Bank Indonesia (BI) stated that the direction of the 2022 economic journey will be better in line with the positive trend that occurs before the close of 2021. BI Governor Perry Warjiyo said this at the 2021 Bank Indonesia Annual Meeting which was held today in Jakarta.

"Indonesia's economy will recover in 2022. God willing, growth will be higher reaching 4.7 percent to 5.5 percent in 2022 from 3.4 percent to 4 percent in 2021," he said through a virtual channel, Wednesday, November 24.

According to Perry, in addition to exports, consumption and investment, the increase was also supported by vaccinations, opening up the economic sector and policy stimulus. In addition, low inflation in 2021 and a target of 3 percent plus minus 1 percent in 2022 are expected to occur, supported by adequate supply.

"Bank Indonesia will continue to coordinate the central and regional TPI (Inflation Control Team), as well as maintain the stability of the rupiah exchange rate as a commitment amidst the normalization of monetary policy of the Fed (US central bank)," he said.

Furthermore, Perry also explained several future economic targets, namely a low current account deficit of around 0.1 percent of gross domestic product (GDP) in 2021 and 1.5 percent of GDP in 2022.

Then, foreign exchange reserves are expected to continue to increase, financial system stability is maintained with high capital adequacy, abundant liquidity, third party funds (DPK) and credit will grow by 7-9 percent and 6-8 percent, respectively.

Then, in terms of digital finance, it is believed that it will increase rapidly with projections of e-commerce transactions in 2022 reaching IDR 530 trillion, electronic money of IDR 337 trillion, and digital banking transactions (digital banking) of more than IDR 48,000 trillion.

“Synergy and innovation are the keys to get up and be optimistic. The national economy will recover next year. This is the spirit of Bank Indonesia to continue to synergize with the central and regional governments, OJK, LPS, and of course banking, the business world, the DPR, especially Commission XI, academics, media, and the public," concluded Perry.