BI Reinforces Policy Mix To Support Economic Stability And Recovery

Illustration (Photo: Doc. Antara)

JAKARTA – Bank Indonesia (BI) stated that the management of the national economy is still faced with complex global problems and dynamics of uncertainty.

To anticipate this, the central bank is said to continue to implement a policy mix that is not limited to monetary and macroprudential aspects, but also optimizes policies in the payment system.

“In the face of continued uncertainty, it is impossible for Bank Indonesia to rely on only one policy. The concept of the policy mix needs to be well understood and enhancements need to be made in order to navigate changes in the strategic environment and challenges ahead," said BI Deputy Governor Juda Agung on Wednesday, July 13.

According to him, it is important to continue to innovate and synergize policies as well as strong collaboration in order to support the strengthening of an effective policy mix framework.

"The various risks that have emerged recently cannot be mitigated by just one policy to maintain macro-financial stability," he said.

Juda explained that the various thoughts in the flagship program of the Central Bank Policy Mix were described in 4 major parts.

First, exploration of concepts, implementation, and future challenges. Second, the concept of monetary policy is mainly related to maintaining external stability. Third, financial system stability.

"And the fourth is how to navigate the challenges in the future," concluded Juda Agung.