Universitas Gadjah Mada
Faculty of Economics and Business

In the purpose of education and improving economic literacy for the advancement of education in Indonesia, the Bank Indonesia Institute (BI Institute), Gadjah Mada University (UGM), and the BI DIY Representative Office collaborated to implement the BI Teaching program. BI Teaching also aims to provide participants with a better understanding of the vision, mission, role, and policies of BI which are very important in the nation's economy. This includes the increasing role of BI in the digital era to make a real contribution to Indonesia. The BI Teaching program has been carried out in several selected universities throughout Indonesia and this time it was held at UGM on Friday (26/8). BI Teaching was held close to the 69th BI Anniversary and the 7th RI Anniversary. This activity is part of the Executive Series of Master of Management (MM) FEB UGM in the context of the 67th Anniversary of FEB UGM. BI Teaching is also part of the Seminar and Public Lecture (SinarKU) of the Department of Economics, Faculty of Economics and Business (FEB) UGM. BI Teaching was attended by undergraduate and postgraduate students of FEB UGM as well as invited guests.

BI Teaching invited the Governor of Bank Indonesia, Perry Warjiyo, S.E., M.Sc., Ph.D. as the speaker. BI Teaching was also attended by the Rector of UGM, Prof. dr. Ova Emilia, M.Med.Ed., Sp.OG., Ph.D., Dean of FEB UGM, Didi Prof. Dr., Achjari, M.Com., Ak., CA., Head of Bank Indonesia Institute, Dr. Yoga Affandi, Dicky Satria as Chair of the BI Teaching Committee, Head of BI Representative for the Special Region of Yogyakarta, Budiharto Setiawan, S.H., M.Sc., Chair of the DIY Indonesian Economic Bachelors Association (ISEI), Eko Suwardi, M.Sc., Ph.D. , Chairman of Kafegama, Dr. Bogat Agus Riyono, M.Sc. Ak., CA., Vice Dean for Research, Community Service, Cooperation, and Alumni, Gumilang Aryo Sahadewo, S.E., M.A., Ph.D., Head of the Master of Management (MM) Study Program Jogja Campus, Amin Wibowo, S.E., M.B.A., Ph.D., Head of the MM Study Program Jakarta Campus Tandelilin Eduardus, Prof., Dr., M.B.A., Head of the Department of Economics, Rimawan Pradiptyo, S.E., M.Sc., Ph.D., and Professor of the Department of Economics Prof. Dr., Insukindro, M.A.

BI Teaching began with an opening by the presenter, followed by chanting of Indonesia Raya and the Hymn of Gadjah Mada. The event continued with the handover of certificates of the Bank Indonesia Social Program (PSBI) from the Governor of BI to the Dean of FEB UGM. BI Teaching continued with a prayer session and a group photo. Then, the Rector of UGM, Prof. dr. Ova Emilia, M.Med.Ed., Sp.OG., Ph.D. expressed his remarks for BI Teaching. Followed by remarks from the Dean of FEB UGM, Prof. Dr. Didi Achjari, M.Com., Ak., CA.

The BI Teaching discussion was guided by a moderator, namely Muhammad Fawdy Renardi Wahyu, Academic Assistant of FEB UGM. Fawdy invited Perry to start the discussion. Perry then started a discussion by explaining the urgency of BI Teaching and stating the main theme of BI Teaching is "Consolidating Synergy and Innovation for Economic Recovery''. Perry divides the series of discussions into five broad outlines. On the first point, Perry explained the role of BI in the economy of Indonesia. As the central bank, BI plays a role in maintaining monetary stability, the financial system, and the payment system in order to support healthy, sustainable, and inclusive economic growth in order to improve people's welfare. BI manifests this with Monetary Policy, Macroprudential Policy, and Payment System Policy. In the second point, Perry discusses the Framework for the Synergy Mix of National Policy & BI, illustrated by a graph of the growth of economic capacity and economic conditions in the influence of national policies. In this case, Central Bank Policy, Fiscal Policy, and Structural Reforms are intertwined and continuous in instilling national stability, explained Perry. Within BI itself, the three central bank policies were also formulated to blend and synergize, assisted by supporting policies, added Perry. In the third point, Perry explained the urgency of the Innovation of the Leading Digital Central Bank. Perry presented an infographic titled 'Digital Financial Economic Ecosystem 2025' which underlines financial inclusion and digitalization of the Real Sector, particularly by applying the Indonesian Standard Quick Response Code (QRIS) in markets and tourist areas in order to strengthen Indonesia's advanced competitiveness in the global arena. In this regard, Indonesia has launched the Payment System Blueprint 2025 which aims to integrate Indonesia's digital financial economy nationally.

In the fourth point, Perry elaborated on the current economic challenges. Indonesia’s domestic economy is in a good position, marked by positive economic growth, consumption, and exports in several quarters. However, there is turmoil in the international economy because it is triggered by COVID-19 and Geopolitical Conflicts so the global economy is experiencing stagflation, rising food and energy prices, explained Perry. Responding to economic challenges, Perry explained that BI has 5 herbs (policies) namely monetary, macroprudential, payment systems, money market development, and inclusive and green financial economy. Monetary policy focuses on supporting stability (pro-stability), while the other four policies support development (pro-growth). Its implementation in the Decision of the BI Governor's Meeting 22-23 August 2022, as a pre-emptive and forward-looking step, BI increased the BI 7-Day Reverse Repo Rate by 3.75%, the Deposit Facility (DF) Interest Rate by 3.00% and the Lending Facility (LF) Interest Rate of 4.50%. In addition, BI has also set other policies to strengthen stability and support development, including market operations to hold food inflation, continuing transparency of basic lending rates (SBDK), and broad application of QRIS for the campaign to digitize Indonesia, as well as international cooperation through forums, e.g. G20 and ASEAN Connectivity. At the end of BI Teaching, Perry opened a question session, guided by Fawdy.

Reportage: Hayfaza Nayottama