Relationship with BI Governor Solid, Purbaya Says He's Often Treated to Meals

Finance Minister Purbaya Yudhi Sadewa has dismissed rumours of a rift between himself and Bank Indonesia (BI) Governor Perry Warjiyo. He stressed that the relationship between the government and the central bank is very good and close, particularly in terms of fiscal and monetary policy synergy. This synergy includes efforts to maintain stability and strengthen the rupiah’s exchange rate against the US dollar. “Very good, I think. People outside have misjudged, thinking there is a problem between me and the Governor. No, we do things together, though he’s the one who treats me to meals. But what is clear is that our policies are very synchronised,” Purbaya told CNBC Indonesia. Purbaya also said that Bank Indonesia’s steps to intervene in the market to safeguard the rupiah exchange rate were appropriate, while reiterating that fiscal and monetary policy synergy is working very well. “So indeed, the central bank needs to intervene in the market to show they are doing everything they can to maintain the exchange rate. That is very necessary. And we, with the central bank, are already very synergistic in helping to maintain sentiment towards the rupiah exchange rate,” Purbaya asserted. Meanwhile, Bank Indonesia Governor Perry Warjiyo has also confirmed that, in addition to a series of policies, the central bank continues to strengthen policy coordination with the government. This coordination includes close synergy between monetary and fiscal policies to mitigate the impact of global uncertainty stemming from the war in the Middle East on the domestic economy, ensuring stability and economic growth remain well maintained. “Policy synergy with the Financial System Stability Committee (KSSK) is also being tightened to help maintain financial system stability and encourage financing for the government’s Asta Cita programmes,” Perry explained.