On 10th February 2020, SEAC is hosting a Public Lecture by Dr. Perry Warjiyo, Governor of Bank Indonesia, Indonesia's Central Bank, chaired by SEAC Director Prof. Hyun Bang Shin, on the topic of contemporary central bank policy responses to diminishing globalisation and rising digitalisation.
Trade wars between US and China, and other inward trade policies, which characterise the trend of diminishing globalisation have had a negative impact on world trade volume and global economic growth. At the same time, digitisation of economy and finance with all the benefit and risks have penetrated to various economic segments. These two big trends have complicated the central bank policy response in maintaining price and financial system stability. Monetary policy through interest rate setting alone would not be effective in coping with the negative impacts of this inward trade policy nor to achieve price stability, especially when inflation is near zero. On the other hand, the fast growing digital economy and finance in the forms of fintech and unbundling financial services outside banks and other financial institutions, has the potential to create 'shadow banking' and digital money, to loosen monetary transmission mechanisms and to pose an increased risk to monetary and financial stability. In this context the central bank is tasked with formulating an integrated policy framework in the area of monetary and macroprudential policy.
- Dr. Perry Warjiyo is the Governor of Bank Indonesia for the period of 2018-2023, having received the accolade as Central Bank Governor of the Year - Asia Pacific from Global Capital in 2019. Before serving as the Governor of Bank Indonesia, Dr Warjiyo had a long withstanding career at Bank Indonesia since 1984, primarily in the area of economic research and monetary policy, international issues, organisational transformation and monetary policy strategies, education and research on central banks, management of foreign reserves and external debts, and the Governor Bureau. Dr. Warjiyo’s international exposure includes serving as the Executive Director of the International Monetary Fund (IMF), representing 13 member countries in the South-East Asia Voting Group from 2007-2009 and representing Bank Indonesia and Indonesia at various international forum such as the IMF, G-20 Group of Nations, ASEAN, ASEAN + 3, FSB, Islamic Financial Service Board (IFSB) and Islamic International Liquidity Management (IILM). He earned his undergraduate degree from esteemed public university in Indonesia, Gajah Mada University, in 1982. He continued his education in Iowa State University and successfully gained his Master’s degree in 1989 and Ph.D. in 1991. His passion for science and academic education makes him write and publish several books, journals, and papers on economy, monetary, and international issues. Recently, his latest book, "Central Bank Policy: Theory and Practice" has been translated and published by Emerald UK in 2019.
About Bank Indonesia
- Bank Indonesia is the central bank of the Republic of Indonesia, a nation among the largest economies in the world by nominal GDP and a member of G20 countries. Categorised as a lower-middle income country, the economy is supported by a vast population (the world’s fourth) with demographic bonus, robust investment and stable inflation. Bank Indonesia has a single objective of achieving and maintaining stability of Indonesia’s currency, the Rupiah. In pursuit of the objective, Bank Indonesia is supported by three sectors: monetary, financial system stability, and payment systems. Currently, Bank Indonesia’s monetary policy remains accommodative, consistent with controlled inflation in the target corridor and maintained external stability, as well as efforts to maintain domestic economic growth momentum against a backdrop of global economic moderation.
Watch the lecture here
This event relates to SEAC's governance theme