The Pro-Growth And Pro-Stability Recipes Are No LONGer Manjur, BI's PROBLEMs Are NOW MUCH Larger

Illustration (Photo: Doc. Antara)

JAKARTA - Head of the Bank Indonesia Payment System Policy Department (BI) Filianingsih Hendarta expressed his opinion that the central bank is now faced with more complex problems after the COVID-19 pandemic.

According to him, BI's approach through efforts to maintain stability and policies to encourage growth (pro-growth) requires strategic updates.

"On the one hand, the uncertainty of economic recovery will demand a prostability policy. But on the other hand, the effectiveness of the pace of the economy demands policies that grow," he said while attending the fit and proper test for the candidate for Deputy Governor of BI at the DPR, Monday, February 13.

Fili explained that this condition cannot be separated from Indonesia's status as a country with an open economy which makes policy determination a dilemma.

"The complexity is increasingly felt because of the diversity of our economic structure. Thus, the debate is no longer only limited to prostability and growth but how growth itself can reach and be enjoyed by all levels of society at the center and regions," he said.

Fili added that he would encourage the central bank to be able to produce regulatory outputs that accommodate common interests as much as possible.

Policy strategy can no longer be mixed as usual. There needs to be an effort to be able to seize opportunities that arise from existing changes. There are at least two opportunities that we need to address. First, the flow of financial digitization and the second is the issuance of the Law on the Development and Strengthening of the Financial Sector (P2SK)," he said.

Fili stated, specifically the last point made the order in the financial sector change. Not to mention strengthened by the presence of the Personal Data Protection Law (PDP) which was passed recently.

"In the midst of volatile macro conditions, there are a number of opportunities to attend through post-pandemic digitalization shifting. Through the P2SK Law and the PDP Law, the government and the DPR will strengthen the role of Bank Indonesia in payments to accelerate the Digital Financial Economy (EKD)," he said.

VOI noted that BI will focus its monetary policy on 2023 in maintaining stability.

Macroprudential policies, digitization of payment systems, deepening of the money market, as well as inclusive and green economic and financial programs continue to be directed to encourage growth (pro-growth).