The exchange rate will come under pressure this year
Jakarta (ANTARA) - Bank Indonesia (BI) believes the national economy will grow at a faster pace this year as compared to that in 2021.

The projection is contained in the Indonesian Economic Report published along with Bank Indonesia's Annual Report and Indonesia Sharia Economic and Financial Report 2021.

"Under the Indonesian Economic Report, we convey our optimism in 2022 in detail. InsyaAllah (God Willing), the economy will perform better within the range of 4.7 percent to 5.4 percent," BI Governor Perry Warjiyo stated in Jakarta on Wednesday.

Warjiyo forecast inflation to increase in 2022, albeit under control, to achieve the target of three percent, give or take one percent.

"The exchange rate will come under pressure this year. However, we have committed ourselves to maintaining the stability of the exchange rate in coordination with the Finance Ministry," he remarked.

The BI governor further urged the banking industry to increase the amount of loans extended to the public.

Warjiyo forecast credit growth in 2022 to cross seven to nine percent.

"Let us increase the amount of credits and financing to help economic and business recovery that constitutes the power of our synergy, national economic policy synergy. Vaccination is a prerequisite," he remarked.

He expressed gratitude to the government for its fast vaccination drive.

"InsyaAllah (God Willing), we will get the booster vaccination soon, so that the economic sector, fiscal and monetary stimuli, financing and reform in the real and financial sectors will soon open," he remarked.

BI will direct its monetary policy this year towards keeping inflation under control and stabilizing the exchange rate that comes under increasing global pressure, he affirmed.

"With regard to four other policies, macroprudential, payment system, market deepening, economic and financial inclusion, green economy and international policy, we will coordinate with the government to push economic recovery," he remarked.

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Translator: Citro Atmoko, Suharto
Editor: Sri Haryati
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