The Indonesian economy expanded by 5.27 percent year-on-year (yoy) during the second quarter of 2018 thanks to strong growth in consumption, Central Statistics Agency (BPS) announced recently, as reported by The Jakarta Post.
he Indonesian economy expanded by 5.27 percent year-on-year (yoy) during the second quarter of 2018 thanks to strong growth in consumption, Central Statistics Agency (BPS) announced recently, as reported by The Jakarta Post. The report continued that the latest figure was better compared to this year first quarter’s growth of 5.06 percent yoy and also 5.01 percent booked in the second quarter of 2017.
Currently, investment is the second-largest contributor to GDP growth. Exports, meanwhile, another national economic growth booster, grew 7.7 percent in the second quarter.
Indonesia’s export-oriented sectors still have a lot of untapped potential. In boosting these sectors, though, policymakers have to come up with proper currency-hedging strategies as well as policies strengthening local industrial sectors so as not to upset the stability of national foreign reserves.
Keeping this balance in mind, the Financial Services Authority (OJK) has just launched a new policy package that treads the fine line between accelerating economic growth through increasing export volume and the need to maintain stability of the national financial system. The new policy package was announced in mid-August.
The above-mentioned missions are also included in the OJK’s work program, aligned with the body’s functions to contribute to the national economy while maintaining the nation’s monetary stability.
In a press release issued in mid-August, the OJK stated that while formulating a new policy package, the body had coordinated closely with the Indonesian government as well as Bank Indonesia as part of their ongoing policy harmonization effort.
All things considered, the OJK has formulated the following new policy package to boost national export volume and growth of foreign exchange-producing industrial sectors:
To boost national economic growth in sectors outside export-oriented industrial sectors, meanwhile, the OJK has launched the following new policy package:
“With this policy package, we aim at boosting the productive sector’s access to loans and capital injection, thereby increasing the sector’s multiplier effect on the real sector’s growth as well as labor absorption, all the while boosting the sector’s export volume,” OJK board of commissioners chairman Wimboh Santoso said.
“The policy [strives to achieve all these objectives] not only through procedure harmonization but also by boosting synergy among related ministries and institutions, such as microcredit banks, small-to-medium enterprises [SMEs] managed by the village administrations as well as the people’s business credits,” Wimboh added.
The OJK emphasized in its press release that currently, policymakers are still able to maintain national macroeconomic indicators at manageable levels, keeping the stability of the financial services sector as well as the liquidity of the financial market intact.
The OJK also announced that currently, policymakers have been able to maintain the national financial services sector’s crisis management protocol at a normal level, with the sector’s capital injection, liquidity and risk levels still maintained properly.
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