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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...