BALI, THE IMAGE – The Bali Province Representative Office of Bank Indonesia (KPwBI = Kantor Perwakilan Bank Indonesia) held a Capacity Building for a number of media crews in Bali on Tuesday (9/3/2021). The activity took place at Warung Mina, Denpasar by presenting the Deputy of KPwBI Bali Rizki Ernadi Wimanda and Deputy Director of KPwBI Bali Donny H. Heatubun.
Deputy of KPwBI for the Province of Bali, Rizki Ernadi Wimanda in his presentation said that the main task of Bank Indonesia (BI) is not only to maintain monetary stability, but also financial system stability (banking and payment systems) with the sole objective of achieving and maintaining the stability of the rupiah currency.
Bank Indonesia also has the main task of maintaining a low and stable inflation rate to increase certainty for the business world, as well as safeguarding people’s purchasing power and maintaining competitiveness between countries, in order to create a prosperous Indonesian society.
“In the midst of the Covid-19 pandemic, the economic recovery in Indonesia in general and Bali in particular continues. The recovery will be driven by investment performance, while macroeconomic stability is maintained, “he said.
After this pandemic, the economic outlook will improve, supported by investment and export performance. Likewise, the acceleration of infrastructure will encourage future economic growth. The development of agro-industry, tourism and maritime affairs also needs to be encouraged.
“Bank Indonesia continues to optimize monetary, macropudential and payment system policies to maintain macroeconomic and financial system stability,” he explained.
Coordination with the government has also been strengthened in controlling inflation and structural reforms to boost economic growth.
In the context of Bali, the economic recovery in Bali shows positive developments, although the pattern is still sloping. Bali’s economic growth in the fourth quarter of 2020 grew -12.21% (yoy), slightly improving compared to the third quarter of 2020 which reached -12.32% (yoy).
In terms of price developments, Bali Province experienced a deflation of -0.15% (mtm) in February 2021. Despite falling prices in general, several food commodities recorded an increase in prices. Among them are cayenne pepper which reaches Rp. 130 thousand per kg, red chilies, pork, mustard greens and spinach just before Nyepi, the price tends to creep up.
This was mainly due to the Nyepi celebration period which took place in the first quarter, where supply was still not optimal due to high rainfall and increased demand ahead of the holidays.
It is necessary to note that economic problems cannot be solved by just one institution, there needs to be a policy mix that involves all relevant stakeholders both at the central and regional levels to encourage and develop the economy.
“We continue to improve literacy and education related to central banking functions for SMEs, entrepreneurs, users of financial services, banking and non-banking institutions, students and the general public, in realizing economic independence through the movement of the strategic sector of the domestic economy in Bali,” he explained.
Socialization and public education are very important to increase understanding in being aware of various aspects of investment in the financial sub-sector including opportunities and challenges in the digital economy era for business people.
By understanding and knowing about the functions of a central bank, we can be aware of various adverse aspects. The central bank functions of Bank Indonesia are the monetary authority, the payment system as well as maintaining financial system stability.
“So that this socialization becomes important because the development of smooth, effective and efficient communication will make the transmission of Bank Indonesia policies acceptable to industry, business actors and the public quickly and on target, including controlling inflation expectations,” he said. ***