JAKARTA- The downstream sector, both mineral and non-mineral, not only increases added value but can also improve the economic structure and improve Indonesia’s balance of payments. The important role of the downstream sector is a consideration for Bank Indonesia to determine this sector as one of the sectors that is encouraged through the implementation of the Macroprudential Liquidity Incentive Policy (KLM). This emerged at the KLM National Seminar entitled “Macroprudential Liquidity Incentive Policy: Incentives for Downstream Sector Credit/Financing”, which was held by Bank Indonesia today (13/9) in Jakarta.
Deputy Governor of BI, Juda Agung, on this occasion said that KLM was implemented as an effort to increase banking contributions to strengthen business activities with five main principles. First, providing leverage for economic growth, through increasing/strengthening added value, backward-forward linkages, economic structure, employment, business opportunities and food security. Second, supporting the recovery momentum of certain sectors that still need support. Third, support inclusive and environmentally sound financing. Fourth, implementing targeted financing to certain sectors/commodities, and finally, synergizing Government policies and programs to strengthen the economic structure, in line with inflation control efforts including the National Movement to Control Food Inflation (GNPIP) which is one of the main focuses at the central and regional levels .
To implement this policy, support from the Government and related authorities is needed to create a conducive business climate and strengthening business strategy innovation from business players is very important to strengthen the demand side. By strengthening the supply and demand sides simultaneously, it is hoped that it will be effective in strengthening the national economic structure to encourage sustainable economic growth.
The KLM seminar will be held in several series of topics covering 4 (four) sectors, namely downstreaming, tourism, housing, inclusive and green. The first seminar on September 13 2023 raised the topic of downstreaming. Discussions in the seminar discussed the various challenges faced, so that the momentum of post-pandemic economic growth can continue to be maintained amidst declining export performance due to the weakening global economy and falling commodity prices.
In this context, how can sources of domestic economic growth continue to be expanded, including through support from banking financing, especially in the downstream sector. Present as seminar speakers from the Coordinating Ministry for Maritime Affairs and Investment, Ministry of Finance, HIMBARA, Perbanas, as well as leaders of associations and corporations in the mineral and non-mineral downstream sectors. Today’s seminar is one of a series of seminars from 4 (four) KLM policy sectors. Next, a seminar will be held that will raise the topics of the tourism, housing, inclusive and green sectors.
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