REPUBLIKA.CO.ID, JAKARTA -- Minister of Finance, M Chatib Basri said that Indonesia gained an appreciation of G20 forum related to its monetary and fiscal policy and the ability in reducing fuel subsidies. Bank Indonesia (BI) also increased the interest rate to make the exchange rate strengthened.

Basri was accompanied by BI governor, Agus Martowardojo attending the ministerial meeting of G20 and central bank's governors in Washington, April 10-13, 2014. He said that monetary and fiscal policies maintained economic fundamentals and gave the certainty to investors over the economic outlook in future.

However, Basri claimed that this policy was only short-term solution to the long-term efforts to improve national economic performance through improvements or structural reforms.

"It's only a short-term policy. We cannot always do it, so it must be balanced with structural reforms undertaken in context of political system," Basri said recently.

G20 forum also discussed US economic recovery, as well as the possibility of the Fed's plan to raise interest rate in June 2015 after tapering off was completed. Monetary policy will be connected to US unemployment rate. When it reached 6.5 percent, the interest rate will be raised. Mutia Ramadhani/Antara

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