BI Outlines National Economic Challenges for the Upcoming Three Months

Fathan Qorib, Robert Sidauruk

Governor of Bank Indonesia (BI) Agus Martowardojo has commented that  the Indonesian economy  will face many economic challenges over the next three months. The challenges, Agus continued, will come from to both internal and external factors..

“We also see a deficit for the balance of trade. The financial sector is also indicating a deficit and this affects investors’ perceptions,” Agus said in Jakarta last Friday.Another challenge noted by Agus is the expectation of the public and businesses for the Government to manage inflation.

In addressing this issue, Agus asserted that BI is ready to coordinate with the Financial Services Authority (OJK) and the Indonesia Deposit Insurance Corporation (LPS).

Agus further explained that BI is predicting that inflation will peak sometime in June, July, or August this year.

This trend is similar to previous years where the highest inflation period always occurs during these three months.

In relation to the inflation rate, BI stated that it has planned preemptive steps to increase BI’s deposit facility rate and the BI Rate.

“We (BI) are trying to address the issue of the expected inflation rate and economic system stability,” Agus emphasized.

On a different occasion, Deputy Governor of BI Perry Wariyo asserted that BI and related government institutions are continuously addressing national economic challenges by issuing a number of policies.

These policies, Perry claimed, have been effective in returning the money market to conducive circumstances. This is evident in  the recent stronger rupiah.

Perry admitted that there is a sluggish trend on the Indonesian capital market. However, he said that Indonesia is in a better shape compared to other countries.

“Last week the weakening on capital market was reached -1.9%. However this figure is way better compared to Philippine, Japan and any other country. This shows that policies taken by BI, Ministry of Finance, OJK, and LPS have gradually addressed the national economic issues,” he concluded.

(hot/kc)

Fathan Qorib, Robert Sidauruk

Governor of Bank Indonesia (BI) Agus Martowardojo has commented that  the Indonesian economy  will face many economic challenges over the next three months. The challenges, Agus continued, will come from to both internal and external factors..

“We also see a deficit for the balance of trade. The financial sector is also indicating a deficit and this affects investors’ perceptions,” Agus said in Jakarta last Friday.Another challenge noted by Agus is the expectation of the public and businesses for the Government to manage inflation.

In addressing this issue, Agus asserted that BI is ready to coordinate with the Financial Services Authority (OJK) and the Indonesia Deposit Insurance Corporation (LPS).

Agus further explained that BI is predicting that inflation will peak sometime in June, July, or August this year.

This trend is similar to previous years where the highest inflation period always occurs during these three months.

In relation to the inflation rate, BI stated that it has planned preemptive steps to increase BI’s deposit facility rate and the BI Rate.

“We (BI) are trying to address the issue of the expected inflation rate and economic system stability,” Agus emphasized.

On a different occasion, Deputy Governor of BI Perry Wariyo asserted that BI and related government institutions are continuously addressing national economic challenges by issuing a number of policies.

These policies, Perry claimed, have been effective in returning the money market to conducive circumstances. This is evident in  the recent stronger rupiah.

Perry admitted that there is a sluggish trend on the Indonesian capital market. However, he said that Indonesia is in a better shape compared to other countries.

“Last week the weakening on capital market was reached -1.9%. However this figure is way better compared to Philippine, Japan and any other country. This shows that policies taken by BI, Ministry of Finance, OJK, and LPS have gradually addressed the national economic issues,” he concluded.

(hot/kc)

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