Erwin Haryono. - File photo
JAKARTA: (Bernama-Antara) The International Monetary Fund (IMF) has assessed that Indonesia's economic growth remains robust despite external turbulence, with inflation maintained at the target range and a resilient financial sector, reported Antara news agency.
"Indonesia's prudent policy framework in both the monetary, fiscal, and financial sectors is assessed by the IMF as having created a solid foundation for macro stability and social welfare," said Head of the Communications Department of Bank Indonesia (BI) Erwin Haryono in Jakarta on Thursday (Aug 8).
IMF's assessment of Indonesia's economy in the 2024 Article IV Consultation report was released yesterday (August 7).
The IMF Board of Directors expressed appreciation and positive remarks regarding the policy measures taken by Indonesian authorities.
This was noted in several key areas: Indonesia's commitment to fiscal discipline, inflation reduction within the established target range, data dependent monetary policy, market deepening efforts, and enhancing the effectiveness of monetary policy transmission.
Other important points included strengthening the macroprudential policy framework, the growth agenda towards high-income status by 2045, and commitments to achieve zero emissions by 2060, including measures to limit greenhouse gas emissions and deforestation.
In its report, the IMF projected that Indonesia's economic performance would remain high, at 5 per cent and 5.1 per cent in 2024 and 2025 respectively, amidst risks such as commodity price volatility, slowing growth in major trading partner countries, and spillovers from prolonged high interest rates in global finance.
The IMF recommended maintaining fiscal prudence, appreciating Indonesia's monetary policy stance, continuing reforms to protect the resilience of the financial sector, supporting financial market deepening, and bridging structural gaps to achieve higher and more inclusive growth to support Indonesia's Vision 2045.
The IMF's positive outlook aligns with Bank Indonesia's assessment, which anticipates continued strong growth and resilience of the Indonesian economy against global spillovers.
Bank Indonesia will continue to strengthen policy coordination with the government to mitigate global uncertainty risks while maintaining independence in achieving its legislated goals. Coordination of monetary and fiscal policies will also be reinforced to maintain macroeconomic stability, financial sector stability, and economic growth momentum.- Bernama-Antara
