Fiscal-Monetary Synergy For Sustainable Growth:A Constructive Critique of Indonesia's Economic Policy DebateFrom A Tourism Economics Perspective

Penulis

Kata Kunci:

Fiscal-Monetary Coordination, Central Bank Independence, Monetary Policy Transmission, Tourism MSMEs, Digital Financial Inclusion

Abstrak

Purpose: This article analyses the public debate between Indonesia’s Ministry of Finance and Bank Indonesia regarding economic policy direction through an academic lens supported by empirical evidence from reputable international journals. The study aims to identify the root causes of fiscal-monetary coordination challenges and formulate evidence-based policy recommendations.

Methods: The research employs a descriptive-analytical approach with systematic literature analysis from Scopus-indexed Q1 and Q2 journals for the period 2022-2025, secondary data from Bank Indonesia, Ministry of Finance, IMF, and World Bank, as well as field observations of tourism sector MSMEs.

Findings: The analysis reveals that the core problem does not lie solely with Bank Indonesia, but rather with: (1) institutional fragmentation in policy coordination; (2) weak monetary policy transmission at the banking level with a 105 basis points gap between policy rate cuts and lending rates; (3) an MSME financing gap reaching USD 5.7 trillion globally with 47% of demand unmet in Indonesia; and (4) a policy architecture designed for a different era.

Implications: This study provides practical contributions through institutional architecture reform recommendations, including consideration of a dual mandate for Bank Indonesia, strengthening formal fiscal-monetary coordination mechanisms, accelerating banking transmission, and advancing digital financial inclusion for MSMEs.

Originality: This article offers a unique perspective by combining macroeconomic analysis grounded in current academic literature with observations from a tourism economics practitioner who directly experiences the impact of policies on service sector MSMEs.

Referensi

Bank Indonesia. (2025, November). BI-Rate held at 4.75%: Maintaining stability, strengthening economic growth. Press Release No. 27/274/DKom.

Banerjee, R., Contreras, J., Mehrotra, A., & Zampolli, F. (2024). Inflation at risk in advanced and emerging market economies. Journal of International Money and Finance, 142, 103025.

Bilbiie, F. O., Monacelli, T., & Perotti, R. (2024). Fiscal policy and inequality in a heterogeneous agent model. NBER Working Paper Series.

Cevik, S. (2024). Promise (un)kept? Fintech and financial inclusion. IMF Working Papers, 2024/131.

Chauvet, L., & Jacolin, L. (2017). Financial inclusion, bank concentration, and firm performance. World Development, 97, 1-13.

De Leo, P., Gopinath, G., & Kalemli-Özcan, S. (2024). Monetary policy and the short-rate disconnect in emerging economies. NBER Working Paper No. 30458.

Eichengreen, B., & Dincer, N. (2024). Central bank independence: Views from history and machine learning. Annual Review of Economics, 16, 393-428.

Erceg, C. J., Lindé, J., & Trabandt, M. (2024). Monetary policy and inflation scares. IMF Working Papers, 2024/260.

Garriga, A. C., & Rodriguez, C. M. (2023). Central bank independence and inflation volatility in developing countries. Economic Analysis and Policy, 78, 1320-1341.

Global Finance Magazine. (2024). Central Banker Report Cards 2024. New York: Global Finance Media.

Gopinath, G. (2025, May). Steering through the fog: The art and science of monetary policy in emerging markets. Speech at Bank Indonesia, Jakarta.

Handayani, F. A., & Kacaribu, F. (2023). Asymmetric transmission of monetary policy to interest rates: Empirical evidence from Indonesia. Bulletin of Monetary Economics and Banking, 26(2), 119-150.

Hoque, M. E., Siddiqui, M. A., & Karimuzzaman, M. (2024). Exploring the dual relationship between Fintech and financial inclusion in developing countries. PLOS ONE, 19(12), e0315174.

Hussain, S., Rehman, A., Ullah, S., Waheed, A., & Hassan, S. (2024). Financial inclusion and economic growth: Comparative panel evidence from developed and developing Asian countries. SAGE Open, 14(1).

IFC & SME Finance Forum. (2025). MSME Finance Gap Report: An updated estimation and evolution of the MSME finance gap in emerging markets. Washington, DC: International Finance Corporation.

IMF. (2024). Strengthen central bank independence to protect the world economy. IMF Blog, March 21, 2024.

IMF Staff Country Reports. (2024). Financing barriers and performance of micro, small, and medium enterprises (MSMEs). IMF Staff Country Reports, 2024/271.

Kiley, M. T., & Mishkin, F. S. (2025). Inflation targeting: Its current state and key challenges. CEPR VoxEU.

Kronick, J., & Petersen, L. (2025). Is monetary and fiscal policy conflict that dire? Journal of Economic Dynamics and Control, 172, 104982.

Lema, E., Massawe, E., Sikira, A., & Mongi, H. (2025). The impact of fiscal and monetary policy on economic growth and structural transformation in Tanzania. Cogent Economics & Finance, 13(1), 2499013.

Lubis, A., Ginting, R., & Panjaitan, H. (2024). Monetary-macroprudential policy synergy through the bank lending channel in Indonesia. Emerging Markets Finance and Trade, 61(4).

Mastercard Center for Inclusive Growth. (2024). Striving to thrive: The state of Indonesian micro and small enterprises 2024/2025. Jakarta: Mastercard.

Meniago, C. (2025). Digital financial inclusion and economic growth: The moderating role of institutions in SADC countries. International Journal of Financial Studies, 13(1), 4.

Messono, O. O., Zambo, F. A., & Bouebe, A. T. I. A. (2024). Does central bank independence reduce economic vulnerability in Africa? International Journal of Finance & Economics.

Oanh, T. T. K. (2024). Fiscal and monetary policies interaction in crisis: An insight into Japan. SAGE Open, 14(1).

OECD. (2017). Financing approaches for tourism SMEs and entrepreneurs. OECD Tourism Papers, 2017/03.

OJK. (2025). Indonesian banking statistics. Jakarta: Financial Services Authority.

Romelli, D. (2024). Trends in central bank independence: A de-jure perspective. BAFFI CAREFIN Centre Research Paper, No. 217.

Wonida, H., & Setiastuti, S. U. (2025). The effect of monetary, macroprudential policy, and their interaction on bank risk-taking in Indonesia. Research in International Business and Finance, 73, 102581.

Unduhan

Diterbitkan

20-12-2025

Terbitan

Vol 4 No 4 (2025): DESTINASI: Journal of Hospitality and Tourism Research

Bagian

Original Research Articles

##category.category##

Lisensi

Hak Cipta (c) 2025 DESTINASI: Journal of Tourism & Hospitality Research

Creative Commons License

Artikel ini berlisensi Creative Commons Attribution-NoDerivatives 4.0 International License.

DESTINASI: Journal of Tourism & Hospitality Research is committed to the broad dissemination of research findings while respecting and protecting the intellectual property rights of authors. This document outlines the copyright and licensing terms that govern all articles published in the journal.

As an open-access journal, DESTINASI believes that unrestricted access to scholarly research accelerates scientific discovery, enhances education, and benefits society as a whole. These terms are designed to balance the interests of authors, readers, and the broader academic community.

Authors retain full copyright ownership of their work published in DESTINASI. The journal does not require authors to transfer copyright as a condition of publication. This means that authors maintain all rights to their work, including but not limited to:

  1. The right to reproduce the work in any form
  2. The right to create derivative works
  3. The right to distribute copies of the work
  4. The right to display the work publicly
  5. The right to perform the work publicly
  6. The right to authorize others to exercise any of these rights

By submitting a manuscript to DESTINASI, authors grant the journal the following non-exclusive rights:

  1. The right of first publication of the work
  2. The right to publish, reproduce, and distribute the work in all forms and media
  3. The right to make the work available online through the journal website and associated platforms
  4. The right to archive the work in digital repositories
  5. The right to include the work in indexing services and databases
  6. The right to sublicense these rights to third parties for purposes consistent with open access

Cara Mengutip

Fiscal-Monetary Synergy For Sustainable Growth:A Constructive Critique of Indonesia’s Economic Policy DebateFrom A Tourism Economics Perspective. (2025). DESTINASI: Journal of Tourism & Hospitality Research, 4(4), 30-39. https://destinasi.pariwisatagajahmada.id/index.php/destinasi/article/view/6