VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Bank Indonesia launched the Financial Stability Study Book (KSK). The book is entitled "Synergy and Policy Innovation to Maintain Financial System Stability and Support National Economic Growth."

"This book is a tangible manifestation of Bank Indonesia's strong commitment to transparency and accountability to the wider community. This book contains three main messages, namely the financial system stability assessment in the first semester of 2022, BI policy mix innovation, and the synergy between BI and the Financial System Stability Committee ( KSSK)," said Governor Perry Warjiyo during a virtual launch from the BI building, Jakarta, Friday (21/10/2022).

In terms of assessment, BI is of the view that the stability of the financial system in the first semester of 2022 is maintained. This condition occurred in the midst of a slowdown in the world economy, high global inflation, and aggressive monetary tightening policies in developed countries.

"Alhamdulillah, Indonesia's economic growth in the second quarter of 2022 reached 5.44 percent. Intermediation performance strengthened, with credit distribution growth at the end of the first semester of 2022 reaching 10.66 percent," said Perry.

In terms of innovation, Bank Indonesia continues to strengthen its policy mix to respond to potential future pressures, including inflation expectations. In the monetary sector, BI has raised the BI interest rate as a front loaded, pre-emptive, and forward looking measure.

"This step is taken to lower inflation expectations and ensure core inflation returns to the target of 3 plus minus one percent or or a maximum of 4 percent. Close coordination is carried out with the central and regional governments through the Inflation Control Team and the National Movement for Food Inflation Control," Perry said.

In terms of synergy, Bank Indonesia strengthened policy synergy to maintain financial system stability through the Financial System Stability Committee (KSSK). The resilience of the financial system is the basis for KSSK to remain optimistic by continuing to be aware of the risks it faces.

"The policy synergy of BI, the Ministry of Finance, the Financial Services Authority and the Deposit Insurance Corporation continues to be strengthened. KSSK maintains macro stability, the financial system, and encourages business credit in priority sectors," said Perry.

The coordination and synergy are aimed at economic growth and increasing exports. In addition, this is also to strengthen economic and financial inclusion. (RRI)