No. 27/15/DKom
Bank Indonesia today (22/01/24) launched the Economic Report on Indonesia (LPI) 2024. LPI is a form of public policy transparency by Bank Indonesia in accordance with Article 58, Paragraph (7) of Act No. 23 of 1999 concerning Bank Indonesia (Bank Indonesia Act), as amended several times, most recently by Act No. 4 of 2023 concerning Financial Sector Development and Strengthening. Entitled 'Synergy Strengthening Stability and National Economic Transformation', LPI 2024 reviews the evaluation of policy implementation by Bank Indonesia in 2024, along with the policy direction and targets to be pursued in 2025. Other important discussions raised in LPI 2024 include the Money Market and Foreign Exchange Market Development Blueprint (BPPU) 2030, as a strategy to accelerate money market and foreign exchange market deepening, and the Indonesia Payment System Blueprint (BSPI) 2030, as a strategy to strengthen national digital transformation.
“United in promoting synergy, maintaining stability and strengthening transformation as the key to stronger economic growth." That was the main takeaway of the keynote speech delivered by the Governor of Bank Indonesia, Perry Warjiyo, at the launch of LPI 2024. In his remarks, Governor Perry highlighted three salient messages. First, Bank Indonesia is optimistic that the economic milestones achieved by Indonesia in 2024 will persist, accompanied by a promising economic outlook moving forward. This is reflected in low and stable inflation managed within the target corridor, maintained Rupiah stability, robust credit growth and rapid digitalisation. We must remain optimistic yet vigilant in this dynamic and turbulent world. Second, Bank Indonesia is committed to strengthening its policy mix to maintain stability and support sustainable economic growth. To that end, monetary policy is oriented towards maintaining stability and fostering economic growth, while macroprudential policies, including Macroprudential Liquidity Incentive Policy (KLM) and MSME development, financial inclusion and payment system digitalisation to also support government financial transactions, are directed towards nurturing economic growth. Third, Bank Indonesia fully supports government programs under the auspices of Asta Cita through five aspects, namely: maintaining economic, monetary, exchange rate and financial system stability, which includes maintaining a stable Rupiah in line with regional currency dynamics against the strong US dollar; strengthening monetary and fiscal policy coordination, which includes purchasing government securities (SBN) in the secondary market through bilateral buyback/debt switching mechanisms; nurturing economic financing through KLM policy to boost bank lending/financing to priority sectors; supporting food security programs in line with efforts to control inflation; and supporting payment system digitalisation, which includes coordination with the Regional Digitalisation Acceleration and Expansion Team (TP2DD) to expand the digitalisation of social security programs, electronification of regional government financial transactions, and electronification of the transportation sector.
Moving forward, Bank Indonesia will maintain close synergy and coordination with the Government and other relevant authorities to safeguard economic prosperity in Indonesia moving forward, while remaining vigilant of the emerging global challenges and the potential spillovers on domestic economic performance.
A full description of the report on task implementation by Bank Indonesia in 2024 and the direction of BI policies in 2025 is available for download in digital format via the QR code or https://www.bi.go.id/id/LPI/default.aspx.
Jakarta 23th January 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
