Indonesia: BI to maintain accommodative policy as GDP set for first annual contraction since 1998

  • Bank Indonesia (BI) will maintain its accommodative monetary policy to help the economy recover from a projected annual economic contraction in 2020, the country’s first such contraction since the 1998 Asian financial crisis, a central banker said on 23 Sep 20.
  • BI deputy governor Dody Budi Waluyo said the country’s economic recovery had been limited to certain sectors as uncertainty surrounding the pandemic remained high. He added that the country should work hard to accelerate the recovery.
  • “BI will continue to maintain economic stability and support economic growth amid the challenging conditions. Our monetary policy will be directed toward an accommodative stance,” he said at an online discussion held by the West Java Economic Society on 23 Sep 20.
  • Indonesia’s economy is set for its first annual contraction since the 1998 Asian financial crisis as the pandemic continues to hamper domestic consumption, business investment and trade.

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