JAKARTA - Former Governor of Bank Indonesia Burhanuddin Abdullah believes the government needs to explain the economic conditions in more detail amid global pressure on markets and exchange rates.
This was conveyed by Burhanuddin after meeting President Prabowo Subianto at the Presidential Palace Complex, Jakarta, Friday, May 22.
According to Burhanuddin, in the meeting the President asked the government to more clearly map out economic issues, the steps being taken, and Indonesia's current position.
"There are things that need to be done in more detail. For example, about what we are, more clearly stated. Then what are we doing, and where are we now," said Burhanuddin.
He said the discussion in the meeting was not specific about the rupiah, but was broader about the impact of global factors on the Indonesian economy, including oil price pressures and financial market turmoil.
Burhanuddin said the experience of past crises was one of the materials discussed with the President. He cited the situation in 2005 when the government raised fuel prices by 126 percent due to a spike in world oil prices.
According to Burhanuddin, the current economic pressure is different from the past, but the way it is handled still needs to be improved and adjusted to the current conditions.
"Well, then the impact is the same as now. Maybe the way it is handled needs to be improved," he said.
Burhanuddin also highlighted the importance of government coordination in facing economic pressures.
According to him, fiscal and monetary policy cooperation must run in the same direction. Fiscal is related to the government's budget and spending, while monetary is related to interest rate, inflation, and exchange rate control by Bank Indonesia.
"How is the budget, how is the monetary, how is the teamwork to solve this problem," he said.
He said the President also asked the Minister of Finance to think about a number of inputs that he conveyed in the meeting.
"There was a general one that I proposed, but the President asked the Minister of Finance to try to think about the things I thought about in the future," said Burhanuddin.
However, he did not want to elaborate on the proposal.
"Later, later," he said.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
