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.

Jakarta Post

Quo vadis BI’s policy communication?

  • Haryo Kuncoro

Jakarta   /   Mon, December 9 2019   /  01:20 am

Research director at the Socio-Economic and Educational Business Institute (SEEBI) Jakarta and lecturer at the State University of Jakarta’s School of Economics. The views expressed are his own.The results of Bank Indonesia’s (BI) board of governors meeting from Nov. 20 to 21, seemingly leave a little bit of contradiction.On the one hand, BI decided, starting Jan. 2, 2020, to ease the reserve requirement to promote liquidity in the money market. In BI’s point of view, the availability of liquidity is required for the banking industry to conduct financial intermediary functions. The increase in bank loan capacity, in turn, will preserve the momentum of domestic economic growth amid the global economic downturn.On the other hand, BI at the same time issued a projection of bank loan growth. The bank loan growth target throughout this year was cut to 8 percent, while the figure for nex...