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Macroeconomics for practitioners

2016-09-26 11:09:06

What does La Nina's unseasonal weather mean for the Indonesian economy? Equipped with knowledge from the Macroeconomics for Practitioners training course, Indonesian government officials are well placed to respond.

Over 29 August to 2 September 2016, 40 participants from the Ministry of Finance, Ministry for Planning, Bank Indonesia, Coordinating Ministry for Economic Affairs and several universities came together to build a common understanding of Indonesia’s macroeconomic setting. The course was led by Dr Rajan Govil and Dr Yougesh Khatri, both former International Monetary Fund officials, with a wealth of private sector and teaching experience.

"I am delighted to bring this training package to Indonesia, we have had so many requests for macroeconomic modelling" said David Nellor, Facility Director AIPEG. "The Fund conducts similar courses, but the challenge is that only 1-2 government officials can attend at a time, and usually in Singapore or Washington."

Held in the newly opened Bank Indonesia Institute, interactive exercises took participants through forecasting the real, monetary, fiscal and external sectors. "Most important is how the sectors are inter linked" said Dr Govil, "If the government is looking at tax policy, for example, this could have an impact on interest rates and international capital flows too. Bringing officials together with a common framework helps think through all the impacts for better economic policy making".

A half day course for executives was also held on 5 September 2016. “Whenever we train officers, it is important to also demonstrate the value of the training to their managers so they can use the new skills. A strong macroeconomic framework prompts important policy questions for us all to consider,” noted Pak Lukita Dinarsyah, Secretary of the Coordinating Ministry for Economic Affairs.

As for the impact of La Nina, "perhaps a short-term impact on inflation as harvests are disrupted, but no long term impact on economic growth" offered Prima from the Ministry of Finance.