JAKARTA - The Central Statistics Agency (BPS) revealed that policy consolidation between the government and Bank Indonesia (BI) plays an important role in supporting people's purchasing power to remain strong throughout 2022.
Head of BPS Margo Yuwono said the government through fiscal instruments (APBN) is the main motor in overseeing economic activity in Indonesia.
"Some implementations can be seen from the distribution of additional social protection, such as direct cash assistance (BLT) for fuel, wage subsidy assistance, to support for regional revenue and expenditure (APBD) budgets," he told reporters on Monday, February 6.
In addition, Margo also highlighted the issue of optimizing the state budget as a shock absorber in reducing the rising energy price fluctuation in the middle of last year.
"The increase in energy subsidies which rose 22.4 percent shows the role of the government in attending to maintain people's purchasing power," he said.
Meanwhile, in terms of monetary, Bank Indonesia is noted to have adjusted the benchmark interest rate to reduce the inflation rate which makes the prices of goods need higher.
"BI 7 days of repo rate has increased from 4.25 percent in September 2022 to 5.50 percent in December 2022," said Margo.
This compact collaboration resulted in positive results in the formation of a gross domestic product (GDP) last year which grew 5.31 percent. The book is higher when compared to 2021 which was 3.70 percent.
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