Bank Indonesia also strengthened its coordination with other central banks and

Bank indonesia also strengthened its coordination

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and other appropriate regulatory authorities. Bank Indonesia also strengthened its coordination with other central banks and multinational agencies through its participation in international cooperation forums. This policy coordination was carried out within the corridors of maintaining macroeconomic stability, fostering the momentum for growth, and expediting structural reforms.
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228 2015 ECONOMIC REPORT ON INDONESIA Chapter 14 Despite continued uncertainties with the global economy, Bank Indonesia has maintained stable macroeconomic performance throughout 2015 through strengthening its policy coordination with the Indonesian government and other related authorities. The macroeconomic stability was reflected in the inflation rate remaining within its target range. Volatilities on the Indonesian rupiah exchange rate, due to uncertainties with the Federal Reserve normalizing its policies, the devaluation of the Chinese currency by the People’s Bank of China (PBoC), and the limited supply of foreign currencies, was eventually moderated as well, as the Indonesian government issued its series of economic policy packages. Nevertheless, efforts to prevent and manage risks to maintain stability in the financial systems continue to be carried out, due to the fact that potential risks remain within the global financial markets and from the divergent monetary policies between countries. The coordination between Bank Indonesia and the Indonesian government was carried out across various policy sectors. Apart from maintaining macroeconomic stability, the policy coordination was also focused on fostering the momentum for growth through the coordination of macroprudential policies, particularly those aimed at improving the performance of such real sectors as trade, construction, and manufacturing. Bank Indonesia participated in the Indonesian government’s programs of facilitating bank credits, developing micro, small, and medium enterprises (MSMEs), developing the maritime and fisheries sector, and encouraging entrepreneurships. The coordination was carried out in line with a series of Indonesian government’s economic policy packages. Furthermore, Bank Indonesia also supported efforts of keeping the momentum of growth by coordinating a secure, reliable and efficient payment system, and money supply management system for the economy. The final focus of the policy coordination was implementing structural reforms, particularly in deepening the financial market, facilitating the development of the real sector, and further developing the country’s payment system and currency management system. Deepening the financial market is expected to improve the economic structure’s sustainability through the financial markets, being carried out prudently to maintain stability of the financial system. Developing the real sector was focused on Indonesia’s maritime, food security, energy infrastructure, manufacturing, and tourism sectors. Meanwhile, further developing the payment system and currency management system was focused on expanding services to all reaches
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