ALL THAT CONFIRMATION LATER

With all the credits given to Jokowi administration by the IMF and the like, it is nice to look back and see how the administration had planned the economy well and put everything almost right. Below are two excerpts from one of Bank Indonesia’s 2018 Quarterly Reports I translated into English. The original version in Indonesian comes in the last two paragraphs below. By taking into account last year's and ongoing conditions, prospect and risk of the economy ahead, on February 14 and 15, 2018, the Board of Bank Indonesia decided to maintain the 7-day Reverse Repo Rate at 4.25%, the Deposit Facility rate at 3.50%, and the Lending Facility rate at 5.50%, all effective as of February 19, 2018. The decision was consistent with efforts by Bank Indonesia to maintain stability in the macro economy and the financial system and at the same time to support the momentum for economic recovery. The central bank understands that having loosened the monetary policy proved necessary to push the momentum for domestic economic recovery. Ahead, Bank Indonesia believes that a stable economy is the main foundation for stronger and sustainable growth. Several risks, external and internal, still need monitoring. The external risks include an unexpected increase in the FFR and the global oil price. The internal risks include the ongoing corporate consolidation, sluggish banking intermediacy, and inflation. Bearing that in mind, Bank Indonesia will optimize mix of the monetary policy, the macro prudentials, and the payment system to keep both the macro economy and financial system balanced with regard to the ongoing economic recovery. Berdasarkan kondisi perekonomian terkini serta prospek dan risiko ke depan, Rapat Dewan Gubernur (RDG) Bank Indonesia pada 14-15 Februari 2018 memutuskan untuk mempertahankan BI 7-day Reverse Repo Rate tetap sebesar 4,25%, dengan suku bunga Deposit Facility tetap sebesar 3,50% dan Lending Facility tetap sebesar 5,00%, berlaku efektif sejak 19 Februari 2018. Kebijakan tersebut konsisten dengan upaya menjaga stabilitas makroekonomi dan sistem keuangan serta turut mendukung pemulihan ekonomi domestik. Bank Indonesia memandang bahwa pelonggaran kebijakan moneter yang telah ditempuh sebelumnya telah memadai untuk terus mendorong momentum pemulihan ekonomi domestik. Ke depan, Bank Indonesia meyakini bahwa terjaganya stabilitas perekonomian menjadi landasan utama bagi terciptanya pertumbuhan ekonomi yang lebih kuat dan berkelanjutan. Sejumlah risiko tetap perlu diwaspadai, baik yang bersumber dari eksternal seperti peningkatan ketidakpastian pasar keuangan global terkait ekspektasi kenaikan Fed Fund Rate (FFR) yang lebih tinggi dari perkiraan dan peningkatan harga minyak dunia, maupun dari dalam negeri terkait konsolidasi korporasi yang terus berlanjut, intermediasi perbankan yang belum kuat dan risiko inflasi. Untuk itu, Bank Indonesia akan terus mengoptimalkan bauran kebijakan moneter, makroprudensial, dan sistem pembayaran untuk menjaga keseimbangan antara stabilitas makroekonomi dan sistem keuangan dengan proses pemulihan ekonomi yang sedang berlangsung.