BI Governor Perry Warjiyo: Indonesia's Economy Will Grow By 6 Percent In 5 Years

Governor of Bank Indonesia (BI), Perry Warjiyo. (Photo: Bank Indonesia)

JAKARTA - The Governor of Bank Indonesia Perry Warjiyo projects that Indonesia's economic growth will return to a positive path in the 6th quarter or at the end of this year. If this prediction happens, then Indonesia will get out of the recession zone.

Not only that, Perry also believes that the trend of national economic growth will continue to improve and head for the positive zone after two quarters of contraction or minus.

"We believe that Indonesia's economic improvement will continue. God willing, economic growth will start to be positive in the fourth quarter of 2020 and will increase by 5 percent in 2021 and continue to rise to around 6 percent in the next 5 years," he said at the West Java Investment event. Summit (WISJ), Monday, November 16.

Perry said the sectors that would play a role in encouraging the improvement of the Indonesian economy were public consumption, exports and investment. Then, macro stability and financial system are maintained.

"The rupiah exchange rate is stable and even tends to strengthen. Inflation is low, the current account deficit has decreased and the banking system as a whole is also healthy," he said.

Not only that, Perry said, BI and the government together with the Financial Services Authority (OJK) and the Deposit Insurance Corporation (LPS) continue to coordinate closely to keep the economy moving positively.

Furthermore, he said, the various economic recovery programs carried out by the government also helped the economy move into the positive zone.

"Our commitment is high to maintain the stability of the rupiah exchange rate which is conducive to economic recovery. The benchmark interest rate has been reduced by 1 percent to 4 percent, and we have also carried out large liquidity injections or quantitative easing, more than IDR670 trillion or 4 percent of GDP," he explained. .

In addition, he said, in order to ensure liquidity in the banking sector was more than sufficient to stimulate and support economic recovery, Bank Indonesia also pursued loosening macroprudential policies. The goal is to continue to encourage credit and financing for the business world.

"Bank Indonesia also supports and participates in sharing the burden of the 2020 State Budget through an agreement with the Minister of Finance," he said.