Banjarmasin – Representative Office (KPw) of Bank Indonesia (BI) South Kalimantan Province (South Kalimantan) held the 2020 Bank Indonesia Annual Meeting (PTBI) Thursday (3/11/2020) in Banjarmasin.
The theme of the meeting was “Synergize to Build Optimism for Economic Recovery”. The event was coupled with the online PTBI 2020 Bank Indonesia Head Office, attended by the President of the Republic of Indonesia. Bank Indonesia (BI) is optimistic that national economic recovery in 2021 can be realized by strengthening synergies through 1 prerequisite and 5 strategies.
One of these prerequisites is vaccination and the discipline of the COVID-19 protocol, and 5 policy response strategies, namely: 1) opening up productive and safe sectors, 2) accelerating fiscal stimulus (budget realization), 3) increasing credit from the demand and supply side, 4) stimulus monetary and macroprudential policies, and 5) digitalization of the economy and finance, especially MSMEs. This was conveyed by the Governor of BI, Perry Warjiyo, at the 2020 PTBI.
On the same occasion, the President of the Republic of Indonesia, Joko Widodo, emphasized that this positive growth momentum must be maintained. The implementation of health protocols must be carried out in a disciplined manner and continue to be vigilant and not careless so that a second wave of pandemic will not emerge which will harm the efforts and sacrifices that have been made.
PTBI is a routine activity at the end of each year to convey Bank Indonesia’s views on the latest economic conditions, challenges and prospects for the future, as well as the direction of Bank Indonesia policies.
Plt. Of The Governor of South Kalimantan, Rudy Resnawan conveyed the importance of transformation efforts considering that in the past few years the South Kalimantan economy has relied heavily on extractive SDA.
“This dependence is very influential on the South Kalimantan economy which grows slower when the price of coal has decreased,” he said
Rudy Resnawan also conveyed the heightened economic challenges as a result of the outbreak of the COVID-19 pandemic. “These challenges affected South Kalimantan’s economic growth in the third quarter of 2020, which contracted by 4.68% (yoy), deeper than the contraction of 2.63% in the second quarter of 2020,” he said.
In line with the theme of PTBI 2020, according to Amanlison Sembiring, Head of Bank Indonesia Representative Office for South Kalimantan Province, cooperation and coordination between all parties is needed to support economic recovery in 2021. The global economy which is gradually improving should trigger a spirit of optimism for economic recovery in Kalimantan South.
The domestic economy which is slowly improving should also be used as a momentum to strengthen synergy to build optimism by all parties, including the Government (Central and Regional), Bank Indonesia, the Financial Services Authority (OJK), vertical institutions/agencies, banks and various other parties to promote economic recovery. It is hoped that the implementation of the protocol for preventing the spread of COVID-19 can support increased economic activity in line with increasing community mobility.
On the other hand, the acceleration of budget realization for the Central Government and Regional Governments and the various stimuli issued are expected to boost people’s purchasing power. Meanwhile, restructuring and credit guarantees and the acceleration of the digital financial economy are expected to support the empowerment of MSMEs in the midst of pandemic.
Improvements in exports from partner countries, work on various government and private infrastructure and controlled inflation within the national target range are expected to boost improvement in the economic prospects for South Kalimantan in 2021.
Bank Indonesia supports national economic recovery through monetary policy stimuli that will be continued in 2021, including through (i) stability of the Rupiah exchange rate in accordance with fundamentals and maintained market mechanisms; (ii) interest rates that will remain low, until signs of rising inflationary pressure appear, and (iii) continue to purchase SBN from the primary market for financing the 2021 State Budget as a non-competitive bidder and a macroprudential policy that remains consistent will be accommodating in 2021.
Bank Indonesia will also continue to accelerate the implementation of the Indonesian Payment System Blueprint (BSPI) 2025, accelerate the deepening of the money market according to the 2025 Money Market Deepening Blueprint (BPPU), continue to support the development of Islamic finance and MSMEs, and continue to be active in various international forums in terms of policy. international.
Bank Indonesia will also continue to direct all policy instruments to support national economic recovery, which are closely coordinated with the Government and the KSSK, while maintaining macroeconomic and financial system stability.
Anang Fadhilah
