Transparency and Accountability of Monetary Policy
Transparency and Communication
Monetary policy can only operate effective with open communications between Bank Indonesia and the public. For this reason, Bank Indonesia works consistently to ensure that monetary policy is communicated to the public in a transparent manner. These communications also represent part of monetary policy accountability and play a role in shaping public expectations of future inflation. Bank Indonesia encourages the public through these communications to perceive and shape future inflation in keeping with the stance adopted in the published target. Monetary policy is therefore communicated on an ongoing basis through announcements and explanations of the future inflation target, Bank Indonesia analysis of the economy, the working framework, past and future monetary policy actions, the schedule for the Board of Governors Meetings and other matters as determined by the Board of Governors.
Monetary policy communications are issued in press releases, press conferences after Board Meetings, publication of the Monetary Policy Review/Report presenting the background to decisions made and explanations provided directly to the public, media, economic actors, market analysts and academics.
Bank Indonesia communicates monetary policy through the following publications:
- Monetary Policy Review
- Indonesian Economic Report
- Quarterly Report to Indonesian Parliament (ID)
- Press Releases on Monetary Policy (link: BI Rate)
Bank Indonesia reports regularly to the Indonesian Parliament on the operation of monetary policy as part of the accountability of Bank Indonesia in performance of tasks and functions vested by law. The reporting of monetary policy takes place through written submissions and verbal explanations of the operation of monetary policy each quarter and of specific aspects of monetary policy as may be deemed necessary. In addition, the Policy Accountability Report is tabled with the Government and made available to the public for the purposes of transparency and coordination.
If the inflation target is not achieved during any given year, Bank Indonesia shall issue an explanation to the Government as material for open explanations presented jointly by the Government and Bank Indonesia to the Indonesian Parliament and the public.