Central bank (Bank Indonesia/BI) will push the developed countries to synchronize their monetary policy in order to minimalize the impacts to the developing countries. BI governor Perry Warjiyo on Monday (June 4) said BI will bring the idea of synchronization to the International Monetary Fund (IMF) and World Bank (WB) Meeting in October 2018.
Indonesia, according to Perry, will use the annual meeting to strengthen the international monetary system in facing global challenges and be able to safeguard the transition of the world economy while maintaining stability.
This normalization of monetary policy will bring impact to the capital outflow for the developing countries, including Indonesia. Currently, Indonesia is dominated by foreign capital amounting to 40%, making Indonesia’s economy is very volatile to the shake in the global economy.
