The improvement in regional economic growth is expected to continue in 2021, in which the regions of Java, Sumatra, Kalimantan, Bali and Nusa Tenggara (Balinusra), and Sulampua will grow respectively by 5.2%-5.6%; 4.0%-4.4%; 2.4%-2.8%; 5.2%-5.6%; and 7.8%-8.2%. The resilience and stability of Indonesia’s external sector is well maintained.
Indeed, under present circumstances, I judge that the support to aggregate demand from fiscal policy—including the more than $ trillion in accumulated excess savings accruing from (as yet) unspent transfer payments—in tandem with appropriate monetary policy, can fully offset the constraint, highlighted in our Statement on Longer-Run Goals and Monetary Policy Strategy, that the ELB imposes on the ability of an inflation-targeting monetary policy, acting on its own and in the absence of sufficient fiscal support, to restore, following a recession, maximum employment and price stability while keeping inflation expectations well anchored at the 2 percent longerrun goal.