Financial Deepening to Support Monetary Stability and Sustainable Economic Growth

This Occasional Paper, prepared by Bank Indonesia, served as a background paper to facilitate discussions on ¡°Financial Deepening to Support Monetary Stability and Sustainable Growth¡± among the SEACEN Governors at the 43nd SEACEN Governors' Conference held on 21 March 2008 in Jakarta, Indonesia. The Paper delve into stages of financial deepening in SEACEN economies for the banking sector and also the capital and money market. The Appendix was prepared by The SEACEN Centre to provide cross country information on financial deepening, monetary stability and economic growth in the SEACEN Region.

QUARTERLY ANALYSIS: THE DYNAMICS OF MONETARY, BANKING AND PAYMENT SYSTEM, QUARTERLY II, 2013

The national economy showed lower growth than the first quarter of 2013 due to the impact of the global economic slowdown and rising inflation in the country. After registering a growth of 6.0% (yoy) in the first quarter of 2013, Indonesia’s economic growth slowed to 5.8% (yoy) in the second quarter of 2013. Despite positive growth, exports are still not strong enough to support economic growth as a result of the weakening global economic demand. Exports are not strong and the weakening purchasing power due to inflation has increasing influence to slowdown household consumption as well as non-construction investment

QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Quarter 3, 2009

The development of global economy, which tends to recover, has provided good impacts to the domestic economy. Indonesia»s economy has potentials to grow better than the early estimate, both for the year of 2009 and for the year of 2010.In 2009, Indonesia»s economy was estimated to grow 4.0-4.5%, or higher than the previous estimate, which was 3.5-4.0%. Meanwhile, for 2010, the economic growth is estimated to reach 5.0-5.5%

Public funding of health at the district level in Indonesia after decentralization – sources, flows and contradictions

<p>Abstract</p> <p>Background</p> <p>During the Suharto era public funding of health in Indonesia was low and the health services were tightly controlled by the central government; district health staff had practically no discretion over expenditure. Following the downfall of President Suharto there was a radical political, administrative and fiscal decentralization with delivery of services becoming the responsibility of district governments. In addition, public funding for health services more than doubled between 2001 and 2006. It was widely expected that services would improve as district governments now had both more adequate funds and the responsibility for services. To date there has been little improvement in services. Understanding why services have not improved requires careful study of what is happening at the district level.</p> <p>Methods</p> <p>We collected information on public expenditure on health services for the fiscal year 2006 in 15 districts in Java, Indonesia from the district health offices and district hospitals. Data obtained in the districts were collected by three teams, one for each province. Information on district government revenues were obtained from district public expenditure databases maintained by the World Bank using data from the Ministry of Finance.</p> <p>Results</p> <p>The public expenditure information collected in 15 districts as part of this study indicates district governments are reliant on the central government for as much as 90% of their revenue; that approximately half public expenditure on health is at the district level; that at least 40% of district level public expenditure on health is for personnel, almost all of them permanent civil servants; and that districts may have discretion over less than one-third of district public expenditure on health; the extent of discretion over spending is much higher in district hospitals than in the district health office and health centers. There is considerable variation between districts.</p> <p>Conclusion</p> <p>In contrast to the promise of decentralization there has been little increase in the potential for discretion at the district level in managing public funds for health – this is likely to be an important reason for the lack of improvement in publicly funded health services. Key decisions about money are still made by the central government, and no one is held accountable for the performance of the sector – the district blames the center and the central ministries (and their ministers) are not accountable to district populations.</p

QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Quarter I, 2010

The process of strengthening the domestic economy was continually supported by the conducive global economic performance. Indonesia»s economic activities showed a significant increase in the fourth quarter of 2009. In that quarter, the Indonesian economy grew by 5.4% (yoy), so that in general, the economy grew by 4.5% (yoy) in 2009. These economic conditions continued to show the optimistic atmosphere that support better economic prospects than previously thought. The Indonesian economy in 2010 was expected to reach 5.5% -6.0% and in 2011 reached 6.0% -6.5%. Price stability was still maintained, as reflected in lower CPI growth during the first quarter of 2010. This was in line with the estimates of significant inflationary pressures, which will not appear until at least the first semester of 2010. For the entire year, CPI inflation in 2010 was targeted at the range of 5% ± 1%

ANALISIS TRIWULAN: PERKEMBANGAN MONETER, PERBANKAN DAN SISTEM PEMBAYARAN, TRIWULAN III - 2014

Perekonomian Indonesia pada triwulan III 2014 menunjukkan bahwa stabilitas makroekonomi dan sistem keuangan tetap terjaga dan mendukung proses penyesuaian ekonomi ke arah yang lebih seimbang. Kondisi ini tercermin dari defisit transaksi berjalan yang menurun, inflasi yang terjaga dan permintaan domestik yang tetap terkelola dengan baik, meskipun pertumbuhan ekonomi domestik masih dalam kecenderungan melambat. Sementara itu, stabilitas sistem keuangan masih solid ditopang oleh ketahanan sistem perbankan dan relatif terjaganya kinerja pasar keuangan. Di sisi lain, sistem pembayaran juga berjalan lancar dalam menopang perekonomian..

ANALISIS TRIWULANAN: Perkembangan Moneter, Perbankan dan Sistem Pembayaran, Triwulan I - 2009

Terus memburuknya perekonomian global semakin dirasakan dampaknya pada perekonomian domestik selama triwulan I-2009. Hal tersebut mengakibatkan perekonomian Indonesia diperkirakan tumbuh lebih lambat dari perkiraan. Perlambatan tersebut selain disebabkan oleh kinerja ekspor yang turun, juga dikarenakan mulai melemahnya daya beli masyarakat. Meski demikian, berlangsungnya aktivitas ekonomi selama dilakukannya pesta demokrasi dalam rangka Pemilihan Umum, diperkirakan mampu menahan lebih jauh perlambatan ekonomi domestik. Ke depan, pada tahun 2009 perekonomian masih dihadapkan pada ketidakpastian pemulihan ekonomi global sehingga perekonomian Indonesia diperkirakan tumbuh lebih rendah dari yang diperkirakan pada awal tahun sebesar 4,0-5,0%. Dengan mempertimbangkan perkembangan dan prospek perekonomian tersebut, pada April 2009, Bank Indonesia kembali menurunkan BI Rate sebesar 25 bps menjadi 7,5%. Penurunan BI Rate ini adalah kali kelima sejak Desember 2008. Secara akumulatif (Des 08-April 09), BI Rate telah turun sebesar 175 bps

ANALISIS TRIWULANAN: Perkembangan Moneter, Perbankan dan Sistem Pembayaran, Triwulan II – 2009

Perkembangan perekonomian global mengindikasikan proses pemulihan yang semakin menguat, walaupun masih terdapat sejumlah risiko. Di negara maju, berbagai indikator pemulihan ekonomi makro telah menunjukkan kecenderungan yang semakin membaik. Paket stimulus yang diluncurkan oleh pemerintah dan program stabilisasi sektor keuangan telah berhasil mendorong penguatan keyakinan masyarakat sehingga mampu mendorong konsumsi. Di samping itu, kondisi pasar kredit yang mulai membaik turut menopang kenaikan pengeluaran konsumsi masyarakat. Kendati demikian, masih tingginya angka pengangguran menjadi faktor risiko yang membayangi proses pemulihan ekonomi di kelompok negara tersebut. Di sisi lain, pemulihan ekonomi negara emerging markets, khususnya China, India dan Korea, semakin menunjukkan penguatan. Dengan dukungan stimulus fiskal dalam bentuk infrastruktur dan tingginya pertumbuhan kredit, kegiatan investasi di China yang telah berlangsung sejak awal tahun terus berlanjut. Geliat permintaan domestik di beberapa negara Asia tersebut pada gilirannya mendorong peningkatan kinerja perekonomian negara lainnya di kawasan. Namun demikian, membaiknya perekonomian di beberapa negara emerging markets diperkirakan belum mampu mengkompensasi perlambatan ekonomi negara maju. Dengan berbagai perkembangan tersebut, kontraksi ekonomi global diperkirakan masih berlanjut, meski dengan laju yang semakin melambat