BI projects better prospects of economic recovery in 2022

BI projects better prospects of economic recovery in 2022

Screenshot of Bank Indonesia (BI) Governor Perry Warjiyo during the BIRAMA Siniar Pojok Thamrin in Jakarta, Thursday (Dec 2, 2021). ANTARA/Kuntum Riswan/ak

The digital economy and finance will continue to increase very quickly to support our economic recovery
Jakarta (ANTARA) - Governor of Bank Indonesia (BI) Perry Warjiyo forecasts better prospects of economic recovery in 2022 as compared to 2021, with growth in the 4.7-5.5 percent range.

"Our economy will be better while heading towards recovery, with growth in the range of 4.7-5.5 percent in 2022, from this year's 3.2-4 percent," Warjiyo stated at the BIRAMA Siniar Pojok Thamrin here, Thursday.

According to Warjiyo, the optimism of recovery must be strengthened by applying the precautionary principle. Growth was supported by development in the consumption, investment, export sectors as well as controlled inflation at three percent give or take one percent.

"The digital economy and finance will continue to increase very quickly to support our economic recovery," he affirmed.

In addition, BI has responded to the precautionary principle through the synergy of existing national economic policies and was further strengthened by the Financial System Stability Committee (KSSK) and all stakeholders, including Commission XI of the House of Representatives.

"There is one prerequisite that we must follow together, which is expediting vaccination, so that mass immunity can be achieved immediately and open up economic sectors gradually to support the nation's economic recovery," he explained.

Warjiyo noted that the five policy responses of BI comprised the transformation of the real sector, including the downstreaming of natural resources, which also responded to global challenges to the green economy.

Second, the synergy between the Ministry of Finance and BI regarding fiscal and monetary policies in order to maintain macroeconomic stability and jointly restore the economy.

Third, BI, along with KSSK, encouraged credit and financing from the financial sector banking to the real sector of the business world, from the demand and supply side.

The fourth response is the digitalization of the national financial economy in accordance with President Jokowi's direction and the last policy response is developing and building an inclusive and green financial economy.

"That is our answer to prudence in an effort to ensure the prospects of economic recovery will rise and recover. Synergy and innovation in national economic recovery," he noted.

BI's policy in 2022 is focused on continuing to encourage economic recovery with synergies among the government, KSSK, and related stakeholders.

"The monetary policy is aimed at responding to the increasing global uncertainty," he expounded.

In addition, BI remains committed to maintaining exchange rate stability and ensuring better liquidity in the banking system.

BI has also planned to gradually and cautiously reduce banking liquidity assistance.

Thereafter, the low interest rate of 3.5 percent will continue to be maintained until there are signs of an increase in inflation.

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