Fiscal-Monetary Synergy Can Reduce Global Risk

The global economy is continuing to slow while one-third of the world's economy is expected to experience negative growth. But Indonesia is projected to continue to enjoy economic growth of 5 percent next year.

KOMPAS/AGUS SUSANTO

Lights turn on at night in a multi-storey building in the Kuningan area, South Jakarta, Sunday (31/7/2022). Amidst the threat of imminent global recession, Indonesia is projected to continue to enjoy economic growth of 5% next year..

WASHINGTON DC, KOMPAS — Amidst the threat of imminent global recession, Indonesia is projected to continue to enjoy economic growth of 5 percent next year. Synergy between fiscal and monetary policies is the key to protecting the Indonesian economy from global economic risks.

“We are grateful there is good synergy between the government's fiscal policy and Bank Indonesia's monetary policy, while still respecting their mutual independence. This is one of the differences with other countries and the key to Indonesia's economic resilience from global economic risks," Bank Indonesia (BI) Governor Perry Warjiyo said in Washington, D.C. on Wednesday evening local time, or on Thursday (13/10) in Western Indonesia Time.