Bank Indonesia policy to remain accommodative amid limited recovery

[JAKARTA] Bank Indonesia's (BI) policy will remain accommodative to help South-east Asia's largest economy recover from the impact of the coronavirus pandemic, Dody Budi Waluyo, the central bank's deputy governor, said on Wednesday.

The recovery has so far been limited to some sectors, "incomplete and uneven", and loan growth has been slow due to weak domestic demand and banks' reluctance to take on more risks, Mr Dody said in a webinar.

"Monetary policy will be directed toward an accommodative stance," he said. "BI will guarantee from the liquidity side, that there is ample liquidity in the banking system to use as capital for national economic recovery."

Mr Dody also said he has heard of a potential relocation of four companies in the automotive and electronic sectors from China to Indonesia's West Java province, worth a total of US$600 million, without giving further details.

REUTERS