Recovery hinges on speed of policy implementation: BI governor

Jakarta Bank Indonesia (BI) Governor Perry Warjiyo opined that the realization of recovery and economic growth will rely on the speed at which various policies are implemented to handle the impact of the COVID-19 pandemic.

Warjiyo highlighted that BI’s optimism for this year was reflected in the economic growth projections, lying in the range of 4.8 percent to 5.8 percent.

“It depends on how fast the various policies are implemented. The more effective it is, the higher it will be above five percent,” the BI governor remarked during an event titled “Building Optimism after the COVID-19 Pandemic” in Jakarta on Friday.

Warjiyo expressed optimism that national economic recovery would be achieved through several sources: exports, fiscal, consumption, and investment.

The BI governor remarked that exports, which were last year clocked at US$16.5 billion, or increased by 14.6 percent, were the highest since 2013 owing to a rise in demand, especially to China, the ASEAN countries, and the US.

“This export will be the capacity to support economic growth,” he noted.

Investment depends on government policies, including the Job Creation Law, so that it can encourage foreign investment in Indonesia.

Warjiyo noted that consumption had begun to increase, albeit not as quickly as the government estimates since it is highly dependent on social assistance and mobility.

“Yesterday, towards the end of the year, the mobility and consumption increased. Now, large-scale social restrictions (PSBB) have been enforced, so it has decreased a bit,” he pointed out.

The BI governor stated that Indonesia’s economic improvement this year will also be supported by macroeconomic and financial system stability.

Warjiyo noted that inflation this year is estimated to be under control, at three percent, give or take one percent; the current account deficit of minus one percent to two percent of the gross domestic product; credit from seven percent to nine percent; and third-party funds from seven percent to nine percent.

Hence, BI governor also invited the government, society, and related authorities to remain optimistic about the outlook for the national economy this year despite a lingering pandemic.

“These are some summaries of the 2021 outlook that underlie us to remain optimistic. Let us build optimism for economic recovery,” he affirmed.

Source: Antara News

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