Five percent growth not substantial to boost peoples welfare: BI

Jakarta (ANTARA News) – An annual economic growth rate of five percent is not adequate for the country to boost its peoples welfare, Bank Indonesia (BI) Governor Agus Martowardojo stated.

“We know that the five percent growth is not sufficient to promote the peoples welfare, and that the economy must grow above five percent. To achieve it, we need structural reforms, both in the fiscal and monetary sectors as well as the financial sector,” he noted during the launch of a book titled “Study of Financial Stability” here on Wednesday.

The governor said the efforts to achieve an economic growth of over seven percent must be accompanied by steps to maintain macroeconomic stability and the financial system in a way that the economy grows at a higher pace.

“If we want the economy to grow, we must ensure that it is strong, sound, and sustainable. Sound economic growth cannot be achieved if there is no macroprudential and financial system stability,” he emphasized.

He pointed out that the Indonesian economy remains stable, but the country needs to stay alert for global challenges and uncertainties, which will still cast a shadow on the Indonesian economy.

The BI has anticipated global economic pressure by strengthening the macroprudential policy and adopting several strategies, including intensifying supervision.

Other strategies adopted by BI are strengthening crisis management and expanding communication and coordination with the Committee for Financial System Stability and consulting with the House of Representatives on a mix policy.

Source: Antara News