TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsBI appointee Tommy suggests pro-growth stance in monetary policy
Incoming Bank Indonesia (BI) deputy governor Thomas “Tommy” Djiwandono has suggested ending the so-called burden-sharing scheme between the government and the central bank but wants to harmonize fiscal and monetary policies in other ways to push economic growth.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Aiming high: Bank Indonesia (BI) deputy governor nominee Thomas “Tommy” Djiwandono prepares to attend a confirmation hearing on Jan. 26 at House of Representatives Commission XI overseeing financial affairs at the Senayan legislative complex in Central Jakarta. (Antara/Apsrilla Dwi Adha)
D
eputy Finance Minister Thomas “Tommy” Djiwandono, who is slated to switch to Bank Indonesia (BI), has suggested ending the so-called burden-sharing scheme between the government and the central bank but wants monetary policy to support higher economic growth.
Tommy was approved by the House of Representatives on Monday to fill the deputy governor post left empty by Juda Agung’s resignation on Jan. 13.
“I maybe want to set apart the fiscal-monetary synergy [I proposed] from what has been done before, namely the burden-sharing [scheme begun] during the pandemic. Right now, what I want to spark is fiscal-monetary synergy on the liquidity and interest rates level, in particular,” Tommy, who is President Prabowo Subianto’s nephew, said during his screening interview.
“Here, I think, things are a little, well, not a little, fundamentally different from what was done during the pandemic. Right now, we are heading toward higher growth, and therein lies the importance of a fiscal-monetary synergy that is somewhat different from the pandemic period,” he added.
The burden-sharing scheme was introduced as a crisis response during the coronavirus pandemic in 2020 that functioned as a lifeline thrown to the state, in a scheme which the central bank bore part of the state budget financing cost.
The scheme allowed BI to buy government bonds in the primary or secondary market but return all or part of the interest it earned on the coupon to the government. It remains in place today, long after the pandemic ended.
Read also: BI continues burden-sharing scheme, buys $12b worth of govt bonds
