Jakarta –
Governor of Bank Indonesia (BI) Perry Warjiyo revealed that Indonesia has its own way of regulating the monetary sector. In fact, BI often carries out policies that are out of the ordinary.
According to him, the International Monetary Fund (IMF) often reprimands and advises BI regarding its policies. However, they still did not listen to the suggestion.
Perry assessed that in theory, the IMF is indeed smarter, but his party is more experienced with policies that are suitable for the country.
“We don’t care what the IMF says, we are grateful for the advice, but we are more experienced. I will tell you, you may be considered smarter but we are more experienced,” said Perry Warjiyo in a talk show at Asean Fest 2023, JCC Senayan , Central Jakarta, Tuesday (22/8/2023).
For example, in anticipating rising global inflation, Perry said BI was not fixated on interest rate instruments only. However, it also uses measures to stabilize the rupiah exchange rate to keep imported goods inflation (imported inflationn) not significant.
In addition, BI is also working with the government to suppress food inflation through the inflation control team. It also uses a number of policies to deal with inflation.
According to his experience, interest rate instruments are not necessarily able to tame inflation. He gave an example of what happened in the United States (US) and Europe.
“The US struggled to use only one instrument, only interest rates, to fight inflation. In fact, it took a very long time and now the economy is in recession. Europe is the same, high inflation is very high,” said Perry.
“Why use only one interest rate to fight all problems? It can’t,” he said.
(hal/ara)
2023-08-22 05:40:49
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