PPIE FEB UI Public Lecture, Indonesia: Economic Outlook and Policy Priorities
Rifdah Khalisha – Public Relations FEB UI
DEPOK – (22/9/2021) The Postgraduate Program in Economics (PPIE) FEB UI together with the International Monetary Fund (IMF) held a public lecture with the topic “Indonesia: Economic Outlook and Policy Priorities” on Wednesday (22/9). Presenting a well-known resource person, James P. Walsh (Senior Resident Representative for Indonesia – IMF).
Starting the event, James spoke about the International Monetary Fund (IMF), promoting international financial stability and monetary cooperation. The IMF also provides oversight, lending, and capacity building to assist countries in maintaining and building strong economies.
Meanwhile, the World Bank promotes long-term economic development and poverty alleviation by providing technical and financial support to help countries reform specific sectors or implement specific projects.
Initially, Indonesia was listed as a member of the World Bank and IMF on April 15, 1954. This partnership only lasted for more than 60 years, in line with the ups and downs of Indonesia’s relations with the international community. But finally, Indonesia rejoined in February 1967. In fact, Bank Indonesia held the opening of the Indonesian Resident Representative Office.
James revealed that the impact of COVID-19 is increasingly evident in several regions, especially developing countries. “Therefore, the IMF has cut its projection for Indonesia’s economic growth from 4.3 percent (April 2021) to 3.9 percent (July 2021) due to the surge in COVID-19 cases in the world, while the realization of vaccinations in Indonesia is still relatively low compared to other countries.”
According to the IMF, each country can do several things to accelerate economic recovery and mitigate the impact of the COVID-19 pandemic, namely loosening fiscal and monetary expansion policies to regulate financial system stability; encouraging equal distribution of vaccinations across the country, the IMF even urges developed countries that have inoculated about 40 percent of the population to share their vaccine surpluses with developing countries; apply 3 layers of defense; updating financial regulations to make them more flexible; and focus the fiscal response on health and income support.
Restrictions have a significant impact on the economy. However, the government must be able to take responsive actions to suppress the spread of the virus and take lessons from restrictions during the pandemic. That way, public confidence in the government does not decrease.
James explained, “In terms of the economy, every country should let small businesses continue to operate, even though the possibility can create a risk of contagion, but these businesses are able to provide economic support.”
“In addition, the government can overcome barriers to digital technology adoption, encourage the use of digital financial services in government transactions, and strengthen regulations and inter-institutional cooperation to overcome challenges in various traditional business lines.” he said.
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