"I explain that there is one prerequisite of vaccination and discipline in implementing COVID-19 health protocols since COVID-19 lies at the epicenter of the problems we face," Warjiyo remarked during an online discussion here on Monday.
The government's move to order vaccines and conduct vaccination in the near future will further build optimism for economic recovery, the BI governor noted.
"Insyaa Allah, (the government) will conduct vaccination in the near future. Bank Indonesia also funds this vaccination from part of the burden-sharing funds in the 2020 State Budget," he remarked.
Warjiyo highlighted that the second prerequisite for economic recovery from the impact of COVID-19 was sound synergy among various parties.
The various prerequisites must be fulfilled to coincide with better prospects for Indonesia's economy in 2021, according to the BI governor.
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Warjiyo projects that Indonesia's economic growth in the fourth quarter will rebound as indicated by -5.34 percent contraction and later improving to -3.9 percent in the third quarter.
The minister has forecast the Indonesian economy to clock growth in the range of 4.8 percent to 5.8 percent, supported by consumption, exports, and investment.
Meanwhile, inflation is estimated to be at a low level, under two percent in 2020 and in the range of three percent, give or take one percent, in 2021.
The rupiah exchange rate will be stable and tend to strengthen. External stability is maintained with a balance of payments surplus and a current account deficit of below 1.5 percent of the 2020 and 2021 Gross Domestic Product (GDP).
Financial system stability is estimated to be maintained, although currently, the credit is low, but with the economic recovery process, credit, and third-party funds reaching a range of seven to nine percent.
"We view that the economic recovery process is taking place. Hence, we need to encourage optimism for better economic performance next year," Warjiyo said. (INE)
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Translator: Fardah
Editor: Yuni Arisandy Sinaga
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