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5/10/2023 12:00 AM
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Financial Stability Review (FSR) No.40: Financial System Stability In Indonesia Maintained In 2022

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No. 25/124/DKom 

Financial system stability in 2022 was maintained, accompanied by increasing intermediation and solid financial system resilience, along with a sustainable and inclusive economy and finance. Consistency, Innovation and Synergy are the three keywords for Bank Indonesia when implementing a well-calibrated, well-planned and well-communicated policy mix.  Furthermore, Bank Indonesia remains upbeat that financial system stability will be maintained moving forward despite the elevated risk of global uncertainty that demands vigilance.  Such optimism is supported by the implementation of accommodative macroprudential policy as an integral part of the BI policy mix, while strengthening synergy with the Financial System Stability Committee and other relevant authorities, business players in the financial sector, the business community and all parties nationally and globally.  That is the key takeaway of the 40th edition of the Financial Stability Review (FSR), entitled Policy Consistency, Innovation and Synergy Strengthening Financial System Stability towards an Advanced Indonesia, launched by the Governor of Bank Indonesia, Perry Warjiyo, on 10th May 2023 in Jakarta.

The BI Governor conveyed three important aspects of FSR No. 40. First, financial system stability in Indonesia maintained solid resilience in 2022, as of March 2023, while effectively providing loans/financing for the national economic recovery.  Resilience was further bolstered by strong capital, ample liquidity and mitigated credit risk.  Second, Bank Indonesia consistently instituted accommodative macroprudential policy to revive lending and financing by the banking industry extended to businesses and offered liquidity incentives to banks with a strong contribution to MSMEs as well as inclusive and green finance.  Third, Bank Indonesia expects to maintain financial system stability in Indonesia moving forward by strengthening synergy and coordination with the Financial System Stability Committee, other relevant authorities, the financial sector and business community. 

The launch of FSR No. 40 was accompanied by a seminar, entitled Policy Consistency, Innovation and Synergy Strengthening Financial System Stability towards an Advanced Indonesia, kicked off by BI Deputy Governor, Juda Agung.  In his remarks, Deputy Governor Juda explained how ongoing economic, trade and investment fragmentation amid aggressive monetary policy tightening in advanced economies is creating global economic resflation as well as complications in terms of financial system stability.  Juda emphasised that Indonesia should be grateful because the stability of the financial system has been maintained and effectively able to support economic growth, which is inextricably linked to the consistency, innovation and synergy of Bank Indonesia across various macroprudential policies that aim to revive economic sectors and drive the economic recovery, while sustainably increasing financial inclusion for MSMEs and low-income earners. 

Demonstrating real synergy between Bank Indonesia and all stakeholders in terms of formulating and implementing policy innovation, speakers at the seminar included the Executive Director of the BI Macroprudential Policy Department, Yati Kurniati, Chancellor of the Perbanas Institute, Hermanto Siregar, and Chief Economist at BCA, David Sumual. In addition, the seminar was attended by academics as well as representatives from the banking industry, business community and industry associations. 

The complete 40th edition of the Financial Stability Review (FSR) is available for download in digital format via the Bank Indonesia official website.  Issued each semester, FSR is a flagship BI publication in the area of financial system stability, containing comprehensive financial system macro-financial assessments for the reporting period, financial system stability assessments, the Bank Indonesia policy response as well as projections for financial system conditions and the policy direction moving forward.  In addition to providing information on emerging issues and developments in the financial sector, FSR also serves as a reference in the decision-making process, allowing the authorities, financial industry, business community and members of the public to create and maintain financial system stability in Indonesia.  In terms of transparency and governance, Bank Indonesia publishes the Financial Stability Review in pursuit of the mandate under Article 58 of Act Number 4 of 2023 concerning Financial Sector Development and Strengthening (UU PPSK).

 

Jakarta, 10th May 2023

Communication Department

Erwin Haryono

Executive Director

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Halaman ini terakhir diperbarui 5/24/2023 12:23 PM
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