Jakarta: The Financial System Stability has stated that Indonesia's financial system stability was well maintained in the second quarter of 2019.
"Domestic financial system stability remains good. It is supported by conducive domestic financial market and banking industry," Finance Minister Sri Mulyani Indrawati said here on Tuesday.
According to her, global economy has started to improve last quarter. In addition, central banks in developed and developing countries have started to loosen their monetary policy.
Nevertheless, the Government will continue to monitor ongoing trade war between the United States (US) and China. At home, the Government will try to reduce the country's current account deficit.
Earlier this month, the Bank Indonesia (BI) Board of Governors previoysly agreed to lower the BI 7-day Reverse Repo Rate by 25 bps to 5,75%. In addition, Deposit Facility (DF) and Lending Facility (LF) rates were lowered 25 bps to 5,00% and 6,50% respectively.
The policy is consistent with low inflation expectations and the need to build economic growth momentum amidst a backdrop of easing global financial market uncertainty and controlled external stability. The monetary operations strategy remains oriented towards ensuring adequate liquidity in the money market and strengthening the transmission of accommodative monetary policy.
BI is maintaining an accommodative macroprudential policy stance to encourage bank lending and expand economic financing. In addition, BI constantly strengthens payment system policy and financial market deepening to support economic growth.
"Moving forward, BI perceives adequate space for accommodative monetary policy in line with low inflation expectations and the need to further stimulate economic growth," BI Governor Perry Warjiyo told a press conference this month.