Accelerating and expanding the vaccination program along with an accommodative policy response through fiscal and monetary stimulus is critical to regaining economic growth momentum after
through the second wave of the pandemic due to the Delta variant. The economy is gradually returning to normal after the government began to slowly relax restrictions on emergency community activities (PPKM). The issuance of the Law on Harmonization of Tax Regulations (UU HPP) as part of structural reform has the potential to increase tax revenues and expand the tax base in line with economic recovery, especially in the long term. The somewhat volatile external situation resulting from the energy crisis that occurred in China, India and Europe could threaten global economic recovery. Despite recent volatility, the Rupiah continued to appreciate to around 14.200 from around 14.300 on the back of an improved domestic pandemic situation, rising commodity prices driving a trade surplus, and higher foreign exchange reserves. With risks still remaining in 2021 and controlled inflation, we see that BI must continue to maintain its policy interest rate at 3,50% to maintain Rupiah stability and support national economic recovery.

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