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BI Board of Governor's Meeting, August 2021

Author

Listed:
  • Jahen F. Rezki

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Syahda Sabrina

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Nauli A. Desdiani

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Teuku Riefky

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Amalia Cesarina

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Meila Husna

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

  • Faradina Alifia Maizar

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

Abstract

Indonesia's GDP rose by 7.07% (y.o.y) in the second quarter and after exactly one year, we are now officially out of economic recession that started in Q2-2020. Despite the better-than-expected growth of the economy, the pace of recovery will be limited due to the emergence of Delta variant that has a high transmission rate and causes mobility restrictions to be imposed since last July. Hence, economic indicators, such as Consumer’s Confidence Index (CCI), and Manufacturing Purchasing Managers’ Index (PMI) continued to plunge. From external conditions, the improvement of the U.S. economy resulted in investors moving their capital from emerging markets which caused Rupiah to depreciate against the USD. Therefore, amidst these uncertain circumstances, we see that BI needs to hold its policy rate at 3.50% while maintaining the exchange rate and financial stability.

Suggested Citation

  • Jahen F. Rezki & Syahda Sabrina & Nauli A. Desdiani & Teuku Riefky & Amalia Cesarina & Meila Husna & Faradina Alifia Maizar, 2021. "BI Board of Governor's Meeting, August 2021," LPEM FEBUI BI Board of Governor Meeting Brief 202108, LPEM, Faculty of Economics and Business, University of Indonesia, revised Aug 2021.
    • Handle: RePEc:lpe:gomeet:202108
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    Keywords

    gdp — economic — economic outlook — inflation — macroeconomics — interest rate;

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