CEDS modeling team supports Bank Indonesia (BI) pushes structural reforms across Indonesian provinces
CEDS modeling team, lead by Dr. Arief Anshory Yusuf, has been supporting staffs from the Economic and Monetary Department of Bank Indonesia (BI) in formulating various structural reforms scenarios as part of their growth diagnostic study.
Today, [17/04/2015] BI team, lead by Dr. Reza Anglingkusumo, Deputy Director of Economic and Monetary Department of Bank Indonesia visited CEDS office in Bandung to work with CEDS modeling team. This visit is part of a series of technical assistance provided by CEDS to the BI’s research team.
As part of its provincial growth diagnostics study, Bank Indonesia has identified binding constraints to inclusive economic growth of each Indonesian provinces. Strong structural reforms in various sectors are necessary to break those constraints. With the help of economic modeling, various alternatives of reform scenarios can be simulated. The analysis will help identify the impact of various reform strategies, including existing strategies pursued by regional governments, that can best produce the largest welfare improvement.
As remarked by Dr. Reza Anglingkusumo, Deputy Director of Economic and Monetary Department of Bank Indonesia, beyond its traditional role in managing discretionary macroeconomic or monetary policies such as controlling inflation and exchange rate, structural reforms in the regions are also advocated by Bank Indonesia. Strong regional economy, represented by its strong real sectors, form a more balanced national economy and more healthy financial and monetary indicators.
The technical assistance of CEDS modeling team to Bank Indonesia is also supported by the Asian Development Bank (ADB), Jakarta office.