On Wednesday, November 24, 2021, the Development Economics Program at Parahyangan Catholic University organized a Forum Group Discussion (FGD) in collaboration with the Ministry of National Development Planning (Bappenas). The purpose of the FGD was to discuss the findings of a study on the Role of the Financial Services Sector in National Economic Recovery. This FGD was part of a series of activities conducted since April 2021, aiming to report the study’s outcomes. The study was a collaboration between the Directorate of Financial Services and State-Owned Enterprises (Ministry of National Development Planning/Bappenas) and the Development Economics Program, providing insights into the role of the financial sector, particularly banking, in driving national economic recovery amidst the Covid-19 pandemic. The study’s findings are expected to be valuable inputs for policy decisions aimed at revitalizing the national economy.
In Indonesia, efforts to recover the economy are formulated through policies within the framework established in the Government Regulation in place of Law, which subsequently became Law (Law No. 2 of 2020) known as the State Financial Policy and Financial System Stability Policy, to address the threat of declining economic growth and stability resulting from the COVID-19 pandemic. Financial sector policies involve all institutions of the Financial System Stability Committee (Ministry of Finance, Bank Indonesia, Financial Services Authority, and Deposit Insurance Corporation). Various ministries and local governments have also implemented direct policies for the real sector. However, as of April 2021, the effectiveness of these policies has yet to be deemed sufficient, as the banking sector has not been considered successful in supporting the real sector, which has suffered from a decline in production processes. Additionally, the purchasing power of the public has decreased due to job losses resulting from the pandemic. This study is conducted to identify the necessary policies for the financial sector, particularly the conventional banking sector, to ensure and expedite the economic recovery of Indonesia. The FGD was implemented in a hybrid format, with seventeen delegates attending in person and the remaining participants joining remotely through a Zoom meeting. The discussion commenced with a presentation of the study findings by Dr. Miryam L. Wijaya, Chairperson of the UNPAR team, and concluded with a question-and-answer session. The discussion proceeded highly engagingly, with many questions and comments being raised. The delegates at the UNPAR premises diligently adhered to and followed the health protocols following the prevailing