TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsLeading first BI meeting, Destry stresses growth, vigilance
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Set as preferred source
Financial Services Authority (OJK) Chief Friderica Widyasari Dewi (left), Finance Minister Purbaya Yudhi Sadewa (second left), interim Bank Indonesia (BI) governor Destry Damayanti (second right) and Indonesian Deposit Insurance Corporation (LPS) chairman Anggto Abimanyu pose for a photo in a press conference following the conclusion of the Financial System Stability Committee (KSSK) meeting on Aug. 3 in Jakarta. (JP/Deni Ghifari)
I
nterim BI governor Destry Damayanti, widely expected to become the central bank’s chief soon, has conveyed a restrictive monetary policy stance in a turbulent global economy but also emphasized the need to push growth.
Following the central bank’s monthly two-day policy meeting, Destry announced in a press conference on Wednesday that the BI Rate was kept at 5.75 percent, where it has been since June.
“We are entering an era called higher for longer, whereby we will face high pressure on the financial sector as well as global financial markets,” said the interim governor.
This was Destry’s first time leading the Board of Governors meeting after Perry Warjiyo suddenly resigned as BI governor in late July. She has been nominated as the sole candidate for the post, but the House of Representatives has yet to conduct its vetting process to approve her.
Destry explained the need for “stability” amid a high likelihood of the United States Federal Reserve holding the Federal Fund Rate (FFR) higher for an extended period to rein in US inflation pressure from high oil prices due to the Middle East conflict.
She went on to say that the US would likely need to issue more debt, which in turn would raise US Treasury yields. High US bond yields and interest rates “have an impact on our economy”, said Destry.
The global bond market has recently undergone a massive selloff pushing up yield due to concerns over ballooning government debt levels in major developed economies. Analysts have warned that the US debt pile of almost US$40 trillion looks increasingly unsustainable.
