The Financial System Stability Committee (“KSSK”) shared that from April to June, Indonesia’s financial system had shown economic recovery and stability. However in Q3, since the implementation of lockdowns (“PPKM”) due to the rising Covid-19 cases, the progress has halted.
Bank Indonesia (BI) is optimistic that credit disbursements can grow 4%- 6% this year, supported by the following four factors. First factor is the recovery of the global economy, raising world commodity prices that have a positive impact on Indonesia
Minister of Finance, Sri Mulyani, announced that current lock down measures (PPKM, Community Activity Restrictions) could last up to 6 weeks in response to the increase of Covid-19. The previous announcement was for the measures to last from 3rd to
OJK forecasts bank credit to grow by only 6% (+/-1%), lower than the target of 7%. Wimboh Santoso, OJK chairman, highlighted that the current spike in Covid-19 cases has further reduced credit-appetite from corporate debtors. These corporations tend to be
The Ministry of National Development Planning (PPN) directs regional development policies in 2022 to build new centers of economic growth outside Java. The policy aims to overcome regional disparities. Deputy for Regional Development at PPN shared that regional development next
McKinsey, a global consulting firm, predicts Indonesia to become the seventh largest global economy by 2030. There are three areas for Indonesia to address to achieve this: to invest in long-term healthcare infrastructure, to modernise the agriculture sector with emphasis
Bank Indonesia (BI) highlighted the 4.6% year-on-year growth in government external debt in January 2021. Erwin Haryono, Head of Communications at BI, shared that this growth is expected due to the increased government spending on Covid-19 pandemic recovery efforts. However,
The Chairman of OJK (Financial Services Authority), Wimbah Santoso, mentioned an improvement in credit growth, in line with the government’s strategy to promote a national economic recovery from the pandemic. The credit growth rate was at negative 1.92% as of
The IMF formally complimented Indonesia after performing a policy assessment that included pandemic management, fiscal stimulus policies, monetary policies, easing macro and micro-prudential policies (stability of financial systems/institutions) and the central bank’s involvement in policy making. Head of Bank Indonesia
First, there is a need to recognise the impact of the Covid-19 pandemic and a sizable health budget to manage it. The government has prepared up to IDR ~172 trillion (US$12 billion) on healthcare, mainly in testing, tracing and treatment
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