Bank Indonesia,

Bank Indonesia: Economic Report on Indonesia 2019: Synergy Key to Maintaining Economy Amidst COVID-19 Pandemic

“Policy synergy is again key to strengthening economic resilience in Indonesia, including mitigating the near-term economic impact of COVID-19. Bank Indonesia nevertheless expects the COVID-19 pandemic to restrain the domestic economic growth outlook for 2020. The Government, Bank Indonesia and other relevant authorities are staunchly committed to strengthening policy synergy towards carefully monitoring the dynamics of COVID-19 transmission and the economic fallout in Indonesia. Bank Indonesia projects economic growth to regain upward momentum in 2021 and strengthen in the medium term. The outlook is supported by three critical elements, namely Synergy, Transformation and Innovation”. That was the key takeaway delivered by the Governor of Bank Indonesia, Perry Warjiyo, in the Economic Report on Indonesia 2019, launched today (30/03) in Jakarta. The book launch, entitled “Synergy, Transformation and Innovation: Towards Advanced Indonesia (Indonesia Maju)”, was conducted digitally in order to mitigate the risk of COVID-19 transmission.

Economic dynamics in 2019 raised three strategic elements to support sustainable economic growth, namely Synergy, Transformation and Innovation. Policy synergy between Bank Indonesia, the Government and other relevant authorities shall constantly be strengthened as a critical aspect of maintaining economic resilience and building growth momentum. Furthermore, synergy can also expedite economic transformation, underpinned by various new sources of economic growth and reinforcing the major sectors, such as manufacturing and tourism, while developing the Islamic economy. Economic transformation is also linked to various efforts to nurture innovation in terms of the digital economy and finance, thus supporting quality and inclusive economic growth.

In its assessment of economic performance in 2019, the Economic Report on Indonesia notes that policy synergy between the Government, Bank Indonesia and other relevant authorities effectively maintained national economic resilience in 2019. Domestic economic stability and growth momentum were sustained as numerous other countries strived to boost economic performance. Policy synergy was directed towards maintaining stability, stimulating growth and accelerating economic transformation towards advanced economy status. The Government increased pro-growth fiscal stimuli, while preserving fiscal sustainability. Meanwhile, Bank Indonesia instituted an accommodative policy mix to catalyse economic growth momentum and support monetary and financial system stability. In addition, various other policymakers have strengthened structural policies to increase economic capacity.

The full version of the Economic Report on Indonesia 2019 is available for download through the QR Code application or Bank Indonesia’s official website. The Economic Report on Indonesia is published annually and contains rigorous assessments of national economic performance for the year as well as the outlook. The Report also contains the important lessons gleaned from macroeconomic policymaking, including the various follow-up agendas required to strengthen the economy. Departing from previous publications, the 2019 edition of the Economic Report on Indonesia is presented thematically and analytically using thought-provoking visualisations. The Economic Report on Indonesia is an insightful reference for all stakeholders moving forward.

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