No. 24/126/DKom
Financial system stability has been maintained despite the various challenges overshadowing the global and domestic economic recoveries. Policy synergy is key to financial system stability, as manifested through an accommodative national policy mix. The financial system remains resilient and the bank intermediation function is improving in line with corporate and household sector performance as well as risk perception. Seeking to nurture a balanced and quality intermediation function, Bank Indonesia has maintained its policy mix to support the national economic recovery, including accommodative and innovative macroprudential policy in synergy with KSSK policy. Given the economic recovery outlook, financial system stability in Indonesia is expected to be maintained in 2022 despite several challenges that demand vigilance. That is the key takeaway of the Financial Stability Review (FSR) No. 38, Synergy and Innovation to Accelerate Intermediation Revival and Maintain Financial System Resilience, launched on 13th May 2022.
At the FSR launch, Bank Indonesia Governor, Perry Warjiyo, conveyed three salient messages tied to FSR No. 38. First, growing optimism concerning intermediation in 2022 despite the various challenges affecting global economic dynamics. Second, policy transformation to maintain financial system resilience, while fostering balanced intermediation. Third, synergy to create an inclusive economy through financing and utilisation of domestic products.
During the opening ceremony of a webinar entitled “National Policy Mix amid Global Economic Dynamics, Geopolitical Tensions and Scarring Effect Challenges”, Senior Deputy Governor, Destry Damayanti, took the opportunity to emphasise the importance of well-calibrated, well-planned and well-communicated policies in response to the various challenges that will continue to characterise the global and domestic recovery landscape moving forward. Discussions at the webinar raised a number of challenges, including the ongoing geopolitical tensions between Russia and Ukraine and the structural impact of the scarring effect caused by the Covid-19 pandemic. Bank Indonesia, therefore, strives to maintain recovery momentum by strengthening national policy synergy, encompassing accommodative macroprudential policy.
The webinar introduced various speakers, namely Dietrich Domanski, Secretary General of the Financial Stability Board (FSB), Yati Kurniati, Head of the Macroprudential Policy Department of Bank Indonesia, Wahyu Utomo, Head of the State Budget Policy Centre of the Ministry of Finance, and Anung Herlianto, Head of the Bank Research and Regulation Department of the Financial Services Authority (OJK). The webinar was also attended by representatives from the Association of State-Owned Banks (HIMBARA) and Indonesia Employers Association (APINDO) as well as various academics.
The 38th edition of the Financial Stability Review (FSR) is available for download in full via the Bank Indonesia official website. Issued each semester, FSR is a flagship BI publication containing comprehensive information, assessments and research on financial system stability in Indonesia, while providing risk signals to the public for risk mitigation purposes. FSR also aims to build public confidence in financial system stability in Indonesia currently and moving forward.
Jakarta, 13th May 2022
Head of Communication Department
Erwin Haryono
Executive Director
Information on Bank Indonesia
Tel. 021-131, email: bicara@bi.go.id
