Depok, September 30th 2023. Universitas Indonesia (UI) once again inaugurated two professors from the Faculty of Economics and Business (FEB), this morning (Saturday, 30/9). One of them was Prof. Dr. Telisa Aulia Falianty, S.E., M.E., who was appointed as a professor in the field of Monetary Economics at the Convention Center, UI Depok Campus. During the procession, she delivered her inauguration speech entitled “Adaptation of Monetary Policy and the Financial Sector in the Era of Decarbonization, Digitalization, Multipolar Currency, and Transformation: Towards a Golden Indonesia 2045”. UI Rector Prof. Ari Kuncoro, S.E., M.A., Ph.D., directly led this inauguration ceremony and it was broadcasted virtually via the Universitas Indonesia YouTube channel and UI TV.
Prof. Telisa said that monetary policy and the financial sector play an important role in minimizing risks in the world of banking/finance, as well as providing protection for public funds in financial institutions. With the aim of achieving economic stability, including monetary stability and financial system stability, monetary policy needs to be responsive and adaptive amidst increasingly complex global and national challenges.
For this reason, she said that there are five important things that need to be considered for monetary and financial policy towards a Golden Indonesia 2045. First, collaboration must be strengthened between the monetary authority and the financial sector through a transition from the conventional side towards digitalization and also a green economy. Promotion of low-carbon investments and collaboration with various stakeholders are important for managing climate-related risks. Apart from that, the government and society must prepare for changes in the financial sector towards digitalization by prioritizing security and data privacy.
Second, monetary policy and the financial sector need to adapt to decarbonization trends and the implementation of environmental social and governance (ESG) by measuring and assessing financial risks that can arise from climate change and other ESG factors. In addition, there is a need to determine effective strategies and policy measures to reduce financial risks from climate change and other ESG factors. Then, it is necessary to ensure that monetary authorities and financial sector regulators understand and assess the scope and size of the risks posed to financial stability from social and financial institutional challenges, and avoid greenwashing.
Thirdly, monetary policy and the financial sector in accordance with the new mandate of Law No. 4 Year 2023 must be able to adapt and transform in the era of national economic transformation with the Indonesian Vision 2045 towards a sovereign, advanced, and sustainable country. The connection/nexus which is not yet optimal between the monetary sector and the real sector needs to be continuously improved through incentives/disincentives on the same level of playing field between the monetary/financial sector and the real sector as well as continuing to encourage healthy and sustainable intermediation of the financial and real sectors.
“However, the key is controlled financial development and innovation while maintaining financial system stability, being resistant to cyber attacks, maintaining data security and privacy, paying attention to the readiness of people from various income groups, as well as the principle of benefit which must remain useful to support comprehensive community welfare. ,” said Prof. Telisa put forward the fourth important thing.
Finally, monetary and financial policies must also be agile in response to increasing global uncertainty, many anomalies, and fragmented geopolitics and geoeconomics, including a multipolar currency world. Indonesia must remain on going to reduce dependence on just one currency and continue to push the Rupiah and interest rates towards a better equilibrium level to support the national development agenda and social welfare.
According to Prof. Telisa, monetary policy cannot only be rigid in achieving inflation and financial system stability, but needs to think about sustainability in the real sector by optimizing coordination, harmonization, and synchronization. Then, helping to form an integrated ecosystem and providing opportunities for all relevant stakeholders, becomes a very critical word.
“Going forward, let us start to continue to be adaptive, along with working hard and synergizing to achieve noble goals, realizing increasingly better added value for individuals, families, nations and the state. At the end of the day, sustainable development is a reality and a necessity, inheriting children and grandchildren with better monetary and financial stability, with a society that is more prosperous physically and mentally, enjoying all the results of innovation and development in the financial and real sectors while enjoying a sustainable natural balance,” said Prof. Telisa to close her inauguration speech.
During the inauguration, Deputy Governor of Bank Indonesia Juda Agung, Ph.D.; Deputy III Chief of Presidential Staff Dr. Ir. Edy Priyono. M.E.; Assistant Special Staff to the President of the Republic of Indonesia Jerry Marmen, Ph.D.; Member of the Board of Commissioners of the Financial Services Authority (DK OJK) Dr. Friderica Widyasari Dewi, S.E., MBA.; and Director of Economic Studies and SKA Debidjianstrat Lemhanas RI Admiral TNI Oktave Ferdinal, S.T., M.Si.(Han)., CHRMP., CFrA.
Prof. Telisa completed her Bachelor of Economics, Department of Economics at FEB UI, in 2001. Then, she succeeded in obtaining a Master’s degree in Economics at FEB UI, in 2003. Then, still at the same campus, she obtained a doctorate in Economics, in 2006. Prof. Telisa has also produced various scientific works which have been published in various journals, both international and national and also in several textbooks. Journals that have been published in the last few years include the titles Monetary and Macroprudential Policy through Risk-Taking Banks in Indonesia (2023); Pop Culture, Global Investment, and Social Inequality (2023); and Property Prices, Capital Inflows, And Financial System Stability In Asean-5 Economies: A Simultaneous Analysis (2022).
