Best Macroeconomic Regulator in Asia Pacific is Bank Indonesia

The Bank Indonesia (BI) continues to use its monetary policy mix and strategy to strengthen itspolicy coordination, maintain macroeconomic stability and support national economicgrowth in 2022. Inflation as measured by the consumer price index in 2022 wasrecorded at 5.51% year-on-year, much lower than the consensus forecast of 6.5%.

Indonesia’s economy grew 5.31% in 2022, showing it has quickly recovered to apre-pandemic economic growth level. The GDP growth rate in 2022 was the highest inthe past nine years and accelerated from a growth rate of 3.69% in 2021.

The benchmark seven-day reverse repo rate was raised by 50 basis points (bps) to 5.25% inNovember 2022, while the deposit facility and lending facility rates were also increased by 50bps to 4.50% and 6.00%, respectively. The BI has delivered a third consecutive 50-bpshike in 2022 as a pre-emptive and forward-looking measure to lowerinflation expectations and return core inflation to its target.

For strengthening the rupiah stabilisation policy to controlinflation, primarily imported inflation, the award for Best Macroeconomic Regulator in Asia Pacific goes to Bank Indonesia.