BI Governor Reveals Three Challenges to Overcome for Indonesia's Economy

Jakarta (ANTARA) - Bank Indonesia (BI) Governor Perry Warjiyo has revealed three challenges that require appropriate responses to drive Indonesia’s economic growth, namely restoring business confidence, strengthening consumption and investment, and ensuring effective policy implementation in the business world.

“We have a strong policy framework, and that is what we must enhance, including downstreaming and industrialisation policies to drive high economic growth,” said Perry at the Grha Bhasvara Icchana, Bank Indonesia Head Office, Jakarta, on Monday.

Further on the first challenge, Perry reminded of the importance of efforts to revive business actors’ confidence as well as to match and channel financing to national priority projects in order to encourage dynamic stability and high economic growth.

The second challenge relates to strengthening the domestic growth engine through sustained consumption and increased investment, so that government priority programmes continue to run while being supported by adequate financing capacity.

He explained that the current global conditions are full of uncertainty in line with ongoing geopolitical conflicts, which impact economic slowdowns, rising global oil prices, and pressure from capital outflows.

Amid global uncertainty, Perry also emphasised the need to strengthen synergies in driving Indonesia’s economy based on domestic strengths and domestic demand.

Meanwhile, BI Senior Deputy Governor Destry Damayanti explained that global pressures can affect the domestic economy through three main channels.