BPS Appreciates The Government's Steps To Add Subsidies And BI That Holds Interest Rates

Illustration (Photo: screenshot of the Ministry of Finance Youtube)

JAKARTA - Head of the Central Statistics Agency (BPS) Margo Yuwono in particular gave his appreciation for the policies taken by the government through the Ministry of Finance (Kemenkeu) and Bank Indonesia in maintaining national economic stability.

"The government and the central bank have tried to implement policies to minimize the impact of global pressure on the Indonesian economy," he said when speaking to the media crew through digital channels on Friday, August 5.

Margo explained that this indication can be seen from the government's steps to increase subsidies and distribute social assistance (bansos) in the second quarter of 2022.

"This realization increased quite sharply year on year (yoy) by 11.3 percent, which was focused on energy subsidies and social assistance," he said.

As for the monetary side, it is known that Bank Indonesia did not increase the benchmark interest rate and chose to maintain the BI rate at the lowest level of 3.50 percent.

"This strategy provides a conducive impact for business actors," he asserted.

Furthermore, Margo also mentioned how the government will stimulate the productive sector through tax incentives in 2022.

"This can clearly be a driving force for the business world as stated in PMK Number 3 of 2022," he said.

VOI noted that historically the value of subsidies and compensation for the community usually amounted to around Rp. 100 trillion per year. This figure then jumped to Rp500 trillion in the 2022 state budget in line with the increase in world energy prices.

Meanwhile, the additional funds come from state revenues, which are fairly stable thanks to the high selling value of coal and palm oil (CPO), which are the mainstay of Indonesia's exports.

Meanwhile, from Bank Indonesia's perspective, the policy of holding the BI rate at 3.50 percent is very meaningful to help business people continue to expand because it avoids a spike in loan interest which can result in an increase in the cost of funds or cost of funds.

"So the government and Bank Indonesia respond to various global conditions with appropriate fiscal and monetary policies," concluded the Head of BPS Margo Yuwono.