Bank Indonesia Receives Acclaim as Best Macroeconomic Regulator in Asia Pacific

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The economic performance of Indonesia has gained global recognition, as evidenced by the recent accolade received by Bank Indonesia (BI). The Asian Bankers, renowned for their banking intelligence services since 1996, honored BI with the prestigious “The Best Macroeconomic Regulator in Asia Pacific” award.

This remarkable achievement follows BI’s previous receipt of the same award in 2020, further cementing their reputation as a leading authority in macroeconomic regulation.

Erwin Haryono, the Head of Communication Department at Bank Indonesia, expressed his appreciation for the international recognition bestowed upon them. He highlighted the significance of this award, emphasizing that it attests to the robustness of Indonesia’s economic performance and the efficacy of BI’s well-crafted blend of policy measures.

The award serves as a testament to the resilience of Indonesia’s economy and its ability to navigate through challenging global uncertainties. Erwin underscored the importance of adhering to the prevailing regulations, stating, “The implementation of these new regulations should be widely disseminated to air transportation users to foster awareness and compliance.”

The comprehensive set of regulations outlined in the latest Circular (No. 16/2023) emphasizes the importance of protecting travelers using air transportation during the transitional phase of the Covid-19 pandemic. These guidelines provide flexibility for individuals who are healthy and pose no risk of Covid-19 transmission to forego the use of masks. Additionally, passengers are encouraged to receive their second booster vaccine dose, particularly those at high risk of Covid-19 transmission.

BI has consistently demonstrated its competence in managing the Indonesian economy, as recognized by The Asian Bankers. The decision to bestow this prestigious award was based on three key considerations. Firstly, BI’s unwavering commitment to implementing a comprehensive monetary policy mix, characterized by a synergistic and coordinated approach with the Government and the Financial System Stability Committee (KSSK).

The synergy among these entities has contributed to maintaining stability and facilitating economic recovery, resulting in inflation levels lower than market expectations and swift restoration of pre-pandemic economic growth.

Secondly, BI’s proactive monetary policies, characterized by a front-loaded, preemptive, and forward-looking approach, have effectively curbed inflation expectations and facilitated the return of core inflation within the target range of 3.0±1%.

Thirdly, BI’s commitment to stabilizing the Indonesian rupiah exchange rate has played a crucial role in controlling inflation, especially imported inflation. Through triple intervention strategies in the spot market, Domestic Non-Deliverable Forward (DNDF) market, and secondary market transactions of Government Securities (SBN), BI has successfully managed the impact of currency fluctuations on inflation levels.

The Best Macroeconomic Regulator in Asia Pacific Award holds immense significance as it recognizes the central bank’s pivotal role in maintaining macroeconomic stability. The Asian Banker, a leading provider of banking intelligence, regularly evaluates the achievements of central banks and financial service regulators across the Asia Pacific, Middle East, and Africa regions.

The ceremony for the Leadership Achievement Awards took place on June 13, 2023, in Bangkok, Thailand, where BI received this distinguished award for the fourth consecutive year since 2020.

This noteworthy recognition further solidifies Bank Indonesia’s reputation as a leading authority in macroeconomic regulation, and serves as a testament to their unwavering commitment to safeguarding Indonesia’s economic stability amidst global uncertainties.