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Jakarta, InfoPublik - The Governor of Bank Indonesia (BI), Perry Warjiyo, said that BI has strategies to overcome scarring effects due to the COVID-19 pandemic. "There are four strategies that need to be our concern in an effort to deal with the scarring effect," said Perry Warjiyo in the G20 Framework Working Group Seminar: Addressing Scarring Effect to Secure Future Growth, which was held virtually, Wednesday, March 9,2022. First, improving the quality of labor to reduce unemployment. "To deal with this, business framework, financial structure, management, and resilience are needed to be able to move forward," said Perry. Second, capital reallocation to tackle production stagnation and support investment to increase productivity and banking system. “Credit distribution needs to be focused on priority sectors and working priority to further enhance the ability of corporations to develop their businesses”, Perry Warjiyo said. Third, empowering MSMEs through capital support for business and MSMEs players in order to increase productivity, so that the recovery of sustainable economic growth can continue to be carried out. "Therefore, monetary and fiscal needs to synergize to create policies that ensure financial system stability, taxation, infrastructure and digital transformation can boost the economy to grow," he explained. Fourth, utilize technology to reduce the digital divide by increasing digital literacy, especially in the regions. "This is to facilitate the exchange of information among people in Indonesia," said Perry Warjiyo.
Policy Considerations On the same occasion, Director of the Employment Policy Department of the ILO, Sangheon Lee, stated that the recovery in employment in developing countries needs to pay attention to effective funding strategies. Lee stated that in creating an effective funding strategy, developing countries must strengthen their cooperation with multilateral players including international financial institutions. “We are very concerned about the different trends in the recovery. We are talking about a speedy recovery but the situation in many countries, especially low-income countries, is still continuing,” said Lee. In addition, Lee said developing countries must also be able to create far more effective policies with a focus on job opportunity development and social protection. This step is to complement efforts to form funding strategy so that job opportunity development can be maximized. Meanwhile at the ILO, Lee emphasized that his party always provides input and cooperates with developing countries, including in making strategies for job creation and social protection. The ILO also continues to discuss with insurance and financial institutions to see opportunities for global financial sector. These steps are in line with Indonesia's G20 Presidency which prioritizes employment in overcoming the prolonged or scarring effect of the COVID-19 pandemic. "Developing the quality of the labor and reducing the unemployment rate is one of priority issues of Indonesia’s G20 Presidency, of four priority issues that have been set," said Lee.
Image: Screenshot from BI Youtube Channel |
