He based his proposal on the proven success of Indonesia’s Financial System Stability Committee (KSSK) in maintaining financial market stability amid global dynamics.
Speaking to ANTARA in Jakarta on Wednesday, Fulvian emphasized that the committee should include representatives from the Industry Ministry, Trade Ministry, Finance Ministry, Indonesian Chamber of Commerce and Industry (Kadin), banks, and the business sector.
"This is important to attract foreign direct investment into domestic industries," he remarked.
The economist underlined that Indonesia’s economic fundamentals remain relatively strong, citing an annual inflation rate of 2.31 percent in August 2023 and a trade surplus of US$4.17 billion in July.
He noted that while these figures reflect improvements in the national economy, the strength of Indonesia’s financial sector has not yet been fully connected to developments in the real sector.
"This trend shows that our financial sector is solid. However, we must remember that a healthy financial sector should support the real economy," he pointed out.
In this context, he argued that the recent wave of demonstrations in Jakarta and several other regions stemmed in part from the weak link between the financial and real sectors.
While welcoming the favorable inflation rate, Fulvian emphasized the need for continuous efforts to stabilize prices of food commodities, particularly rice, by ensuring better planning in supply and distribution.
Bearing that in mind, he advised the government to form a real sector stabilization committee tasked with several duties, including early detection of supply chain disruptions, streamlining policies related to the real economy, and conducting effective public communication.
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Translator: Bayu S, Tegar Nurfitra
Editor: Azis Kurmala
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