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BI outlines three strategies to drive economic growth

We have a strong policy frameworkJakarta (ANTARA) – Bank Indonesia (BI) Governor Perry Warjiyo outlined three appropriate strategies to drive Indonesia’s economic growth, which include restoring business confidence, strengthening consumption and investment, as well as ensuring effective policy implementation.”We have a strong policy framework and that is what we must enhance, including downstream and industrialization policies to drive high economic growth,” Wajiyo said at the BI headquarters here on Monday.First of all, he emphasized the importance of restoring business confidence and channeling cost to priority projects could promote the dynamic stability and high economic growth in the nation.Second of all, due to the strengthening domestic growth through sustained consumption and increased investment, Warjiyo explained that the government priority programmes continue to run while being supported by adequate financing capacity.The last strategy, he said it highlights the importance of ensuring both existing and future policies are effectively implemented at the level of businesses, banks, and society.The current global situation, Warjiyo said, remains highly uncertain due to ongoing geopolitical conflicts, which have slowed economic growth, increased global oil prices, and triggered capital outflows.Amid this global uncertainty, he stressed the need to strengthen synergy in driving Indonesia’s economy based on domestic strength and demand.Meanwhile, Senior Deputy Governor of BI Destry Damayanti explained that global pressures can affect the domestic economy through financial, commodity, and trade channels.Damayanti warned those conditions could pressure the domestic economy, although the growth is still expected to be maintained at around 5.4 percent in the first quarter of 2026.According to her, the domestic economy is largely driven by public consumption as the main contributor, followed by investment and government spending.