JAKARTA - In the Bank Indonesia Board of Governors Meeting on September 16-17, Bank Indonesia said that the domestic economy is also slowly improving, although it is still limited in line with the sloping mobility of society in August 2020.
Export performance is improving in line with rising global demand, particularly from the US and China for several commodities such as iron and steel, pulp and waste paper, and CPO. Meanwhile, household consumption improved on a limited basis in line with the continuation of fiscal stimuli such as the distribution of social assistance and the provision of the 13th salary to the State Civil Service (ASN).
Several early indicators point to improvement, such as retail sales, the consumer confidence index and the Manufacturing PMI. In spatial terms, economic improvements were recorded in several areas outside Java that had commodity exports.
Going forward, the prospect of continuing domestic economic recovery is largely influenced by developments in community mobility in line with the implementation of the COVID-19 protocol in a number of regions, the speed of realization of the Central and Local Government budgets, progress on restructuring and credit guarantees, as well as acceleration of the digital economy and finance, especially for empowering MSMEs.
Bank Indonesia, through its policy mix, will continue to strengthen synergies with the Government and related authorities so that the various policies adopted are more effective in promoting economic recovery. (LM)