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

Muhammad, Rahmad (2025) Fiscal-Monetary Synergy For Sustainable Growth:A Constructive Critique of Indonesia's Economic Policy DebateFrom A Tourism Economics Perspective. DESTINASI: Journal of Hospitality and Tourism Research, 04 (04).

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Abstract

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.

Item Type:	Article
Subjects:	F Hospitality & Tourism > F1001 Tourism
Divisions:	Pariwisata > Sarjana
Depositing User:	Mr. MUHAMMAD RAHMAD
Date Deposited:	14 Jan 2026 02:05
Last Modified:	14 Jan 2026 02:05
URI:	http://repository.iptrisakti.ac.id/id/eprint/5609

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