Jakarta (ANTARA) - Deputy Governor of Bank Indonesia (BI) Aida S. Budiman on Wednesday said that the synergy of the national economic policy mix needs to be improved to mitigate the negative impact of global risk transfer in 2024.

Such synergy is also needed to maintain the momentum of economic recovery while increasing the capacity of the Indonesian economy.

"There are five things that (could help) increase economic capacity. First, we must maintain macroeconomic stability, we must maintain financial system stability, and continue to encourage the digital economy and finance," she outlined at the launch of the 2023 Indonesian Economic Report in Jakarta.

She pointed out that five important synergies need to be pursued in the national economic policy mix: maintaining macroeconomic stability; maintaining financial system stability; and continuing to encourage digital economy and finance; downstream food and mineral and coal; as well as investment, trade, and infrastructure improvement policies.

"Then our economic capacity will increase," she added.

Bank Indonesia's policy mix response that is synergized with the national economic policy is key to ensuring resilient economic performance, she said.

She noted that there are three strategies that could help encourage the revival of the national economy, including continuing to transform into an industrial country and seeking new sources of economic growth, such as tourism and employment.

"In this way, the level of economic growth will be more sustainable and have better quality," she said.

Besides, efforts to strengthen the economic structure also need to be continued.

In the short term, Budiman said, fiscal-monetary policy synergy, supported by financial system stability policies and structural strengthening policies, must continue to be bolstered to support sustainable economic growth.

In the medium to long term, real sector transformation needs to continue to be strengthened to boost economic capacity as well as encourage the revival of the national economy and realize a developed Indonesia, she emphasized.

Capacity-building and medium-term economic revival, according to her, can be pursued through downstream policies on natural resource-based manufacturing and tourism, supported by the downstream primary sector, which includes mining, agriculture, fisheries, and plantations.

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Translator: Martha Herlinawati Simanjuntak, Cindy Frishanti Oc
Editor: Tia Mutiasari
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