2022 State Budget and Fiscal Incentives Presentation slide image

2022 State Budget and Fiscal Incentives Presentation

Further Strengthening of an Accommodative Bank Indonesia's Policy Mix BGM: BI 7-day Reverse Repo Rate Stabilization Of The Rupiah Money Market And Foreign Exchange Quantitative Easing Macro- Prudential Policy Payment System Policy BGM 19-20 JAN 2022 3. Accelerating payment system digitalisation to stimulate economic recovery, particularly in terms of household consumption, while advancing an inclusive and efficient economy and finance: • • • Expanding QRIS uptake through: (i) implementation of a strategy to attract 15 million new QRIS users in 2022 via collaboration with the industry, government ministries/agencies and the community, (ii) expansion of QRIS features, (iii) preparation of business models and the technical aspects of cross-border QRIS implementation with Malaysia. Increasing the number of participants, expanding the services and garnering greater acceptance of BI-FAST for more efficient transactions between banks and members of the public. Intensifying the electronification program through: (i) social aid program (bansos) digitalisation, (ii) electronification of local government services, particularly the acceleration and expansion of regional digitalisation (P2DD), (iii) integration of different transportation modes. Safeguarding the availability of quality rupiah currency fit for circulation throughout the territory of the Republic of Indonesia by strengthening the digitalisation strategy and expanding currency distribution, including the Sovereign Rupiah Expedition Program (Program Ekspedisi Rupiah Berdaulat) in outer, frontier and remote (3T) regions, while expanding the Rupiah Love, Pride and Understanding movement (Cinta Bangga dan Paham (CBP) Rupiah). 4. Accelerating foreign exchange market deepening to support rupiah exchange rate stability, while expanding the availability of hedging instruments and promoting intl trade and investment. • • Implementing regulatory reform of the domestic foreign exchange market, primarily focusing on: (i) relaxing the threshold on spot transactions with an underlying from USD25,000 per month to USD100,000 per month, (ii) developing a non-US dollar reference rate against the rupiah as a fixing rate for derivative transactions to support hedging activity, (iii) standardising the instruments to support transaction digitalisation through the Electronic Trading Platform (ETP) and Central Counterparty (CCP). Expanding the use of Local Currency Settlement (LCS) through socialisation activities targeting the banking industry, corporate sector and other potential users in cooperation with relevant institutions during January and February 2022. 5. Strengthening policy for an inclusive and green economy and finance, particularly on the credit demand side, to support a sustainable economic recovery through MSME development and the empowerment of low-income individuals to level up MSMEs and sharia businesses, while strengthening Bank Indonesia's green and institutional policies to support the transition towards a low-carbon economy. Board of Governor Meeting Source: Bank Indonesia 6. Strengthening international policy by expanding cooperation with other central banks and international organisations, promoting trade and investment and ensuring the success of six priority agendas in the Finance Track in conjunction with the Ministry of Finance during Indonesia's G20 Presidency in 2022. 141
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