BI Perkuat Kebijakan Moneter Mengatasi Inflasi | IDX CHANNEL

Summary

In this episode of IDX Versation, Fajar Wayong discusses Indonesia's economic policies and inflation management. Bank Indonesia emphasizes a balanced approach in tackling inflation, combining monetary policy with social strategies. Governor Desti Damayanti explains that many advanced countries rely solely on monetary measures, which can harm economic recovery. In contrast, Indonesia's approach aims to tackle inflation through coordinated efforts, addressing both supply and demand aspects. The government focuses on supply-side solutions, while Bank Indonesia addresses demand-side factors to maintain economic stability and moderate interest rates.

Takeaways

• 😀 Bank Indonesia is prioritizing a policy mix to control national inflation, ensuring a balanced approach between monetary and non-monetary measures.
• 😀 A solely monetary-focused approach to inflation can have negative impacts on the domestic economy, as explained by the Governor of Bank Indonesia.
• 😀 The global trend of tighter monetary policies is expected to help bring inflation down to lower levels.
• 😀 Senior Bank Indonesia official Desti Damayanti highlighted that many advanced countries rely solely on monetary policy to manage inflation, but this can lead to economic drawbacks.
• 😀 Bank Indonesia advocates for a combined approach of monetary and social policies to address inflation more effectively.
• 😀 The central bank has maintained a moderate increase in benchmark interest rates while coordinating efforts with the inflation control team for targeted inflation reduction.
• 😀 The inflation issue in Indonesia is primarily supply-driven, with factors like energy shortages and unavailable goods contributing to the inflationary pressures.
• 😀 Addressing inflation from the demand side, such as raising interest rates, alone cannot resolve the imbalance caused by supply issues.
• 😀 The government and Bank Indonesia are working together to control inflation from both the supply side and the demand side.
• 😀 The collaboration between the government and Bank Indonesia aims to improve inflation management through supply-side adjustments and demand-side policies.

Q & A

What is the main topic of this broadcast?

The main topic of the broadcast is the national inflation control policy, particularly focusing on how Bank Indonesia is approaching inflation through a mix of monetary policies and other economic strategies.

What does Bank Indonesia prioritize in its economic policy?

Bank Indonesia prioritizes a mix of policies in controlling national inflation, emphasizing that relying solely on monetary policy can negatively affect the domestic economy.

What is the role of monetary policy in controlling inflation according to Bank Indonesia?

Monetary policy plays a key role in controlling inflation, but Bank Indonesia stresses that it should be supported by other policies to avoid negative impacts on economic recovery.

What does Bank Indonesia's governor say about the impact of only using monetary policy?

Bank Indonesia's governor mentions that relying only on monetary policy, without supporting measures, can harm a country's economic recovery, as it doesn't address other important factors like supply and demand imbalances.

What is the global trend in monetary policy that Bank Indonesia is responding to?

The global trend is a tightening of monetary policies, which Bank Indonesia sees as an essential factor for driving inflation to lower levels.

How does Bank Indonesia ensure effective inflation control?

Bank Indonesia ensures effective inflation control by moderating interest rate hikes and coordinating with the inflation control team to target inflation reductions without harming economic growth.

What factors are currently driving inflation in Indonesia?

Inflation in Indonesia, as well as globally, is largely driven by supply-side factors, such as a shortage of goods and energy.

Why can't inflation simply be tackled by increasing interest rates according to Bank Indonesia?

Bank Indonesia explains that increasing interest rates alone is ineffective when the root cause of inflation is supply-side issues, such as a lack of goods or energy.

What is the collaborative effort between Bank Indonesia and the government in tackling inflation?

Bank Indonesia works with the government to address inflation from both the demand and supply sides—Bank Indonesia manages demand-side inflation through monetary policies, while the government focuses on improving the supply side.

What specific measures are mentioned by the Bank Indonesia governor to manage inflation?

The Bank Indonesia governor highlights measures such as moderating the key interest rate increases and working with the inflation control team to achieve a more targeted reduction in inflation.