Source link : https://earth-news.info/general/indonesia-ponders-pro-growth-mandate-for-central-bank-as-economy-flags-financial-times/
Indonesia is considering a significant shift in its central bank’s mandate to prioritize economic growth amid signs of a slowing economy, according to officials and analysts. The move would mark a departure from Bank Indonesia’s longstanding focus on inflation targeting and price stability, reflecting growing concerns over flagging domestic demand and external pressures. As Southeast Asia’s largest economy faces mounting challenges from global uncertainty and cooling investment, policymakers are weighing whether a pro-growth approach could provide a crucial boost to growth prospects while balancing inflation risks.
Indonesia Weighs Shift to Growth-Focused Central Bank Policy Amid Economic Slowdown
Indonesia’s central bank is considering a pivotal adjustment to its monetary policy framework by prioritizing economic growth alongside price stability. This move surfaces as the nation grapples with a slowdown characterized by tepid GDP expansion and rising fiscal pressures. Policymakers are debating whether to relax the traditional inflation-targeting stance in favor of more accommodative measures aimed at spurring investment and consumer spending. Stakeholders argue that a dual mandate could provide the Bank Indonesia (BI) with greater flexibility to support the economy through external shocks and domestic challenges.
Key factors driving this potential shift include:
- Persistent sluggish growth rates below pre-pandemic levels
- Emerging risks from global inflation and…
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Author : earthnews
Publish date : 2025-09-17 14:05:00
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