BI pursues 7 policies to restore the national economy

The Bank of Indonesia will also continue to optimize the mix of accommodating monetary and macroprudential policies and accelerate the digitization of the payments system to further strengthen economic recovery.

Jakarta (medialnews) – The Bank of Indonesia (BI) has confirmed that it will continue the measures aimed at strengthening the national economy recovery efforts, which have worked well through seven policies.

“Bank Indonesia will also continue to optimize the accommodating monetary and macroprudential policy mix and accelerate the digitization of the payments system to further strengthen the economic recovery,” BI Governor Perry Warjiyo said at a conference on Tuesday. virtual press release in Jakarta.

Perry Warjiyo explained that the various policies included, first of all, the continuation of the rupee exchange rate policy to maintain the stability of the exchange rate in line with the fundamentals and the market mechanisms.

Second, continue to strengthen the monetary operations strategy to enhance efficiency position accommodative monetary policy.

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Third, continue the banking policy of transparency of preferential rates (SBDK) by emphasizing the components of preferential rates (cost of funds, overheads and profit margins) and the slow rate of reductions in new interest rates on loans. .

Fourth, strengthen accommodating macroprudential policies by upgrading MSME credit ratio policy to an inclusive macroprudential funding ratio (RPIM) policy, among others through the expansion of banking partners in the distribution of inclusive funding, securitization of the inclusive financing and other business models.

Fifth, lower the maximum credit card interest rate limit from 2% to 1.75% per month to support the transmission of interest rate policies and the efficiency of non-cash transactions as of July 1 2021.

Sixth, broaden the deepening of the money market by accelerating the establishment of a central counterparty (CCP) and standardizing the repo transactions that can be cleared through the CCP.

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Seventh, facilitate the implementation of trade and investment promotions and continue to socialize the use of local currency settlements (LCS) in collaboration with relevant agencies.

“In May and June 2021, investment and trade promotions will take place in Singapore, China, Japan, United States, Mexico, Great Britain, Sweden, Norway and France,” said said Perry Warjiyo.

He ensured that the Bank of Indonesia continues to strengthen political synergies with the government and the Financial System Stability Committee (KSSK), including through the implementation of the KSSK’s integrated policy package, in order to accelerate the national economic recovery.

“Coordination with the government and relevant authorities will also continue to be strengthened to lower bank lending rates and increase corporate finance credit in priority sectors,” said Perry Warjiyo.

Also read: BI keeps benchmark interest rate at 3.5%

Journalist: Satyagraha
Editor: Risbiani Fardaniah
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