, may. 17. in addition to complying with its mandate as specified in the treaties, any policy action on the part of the ecb that addresses environmental sustainability concerns must also adhere to the general provisions of eu primary law, including the principles of proportionality, an “ open market economy ” and institutional balance. 18. see elderson, f. ( 2021 ), “ greening monetary policy ”, the ecb blog, 13 february. 19. see schnabel, i. ( 2021a ), “ from green neglect to green dominance? ”, 3 march ; schnabel, i. ( 2021b ), “ societal responsibility and central bank independence ”, 27 may. 20. see schnabel, i. ( 2021a ), ibid ; parker, m. ( 2018 ), “ the impact of disasters on inflation ”, economics of disasters and climate change, vol. 2, no. 1, pp. 21 – 48 ; ecb and esrb ( 2020 ), “ positively green : measuring climate change risks to financial stability ”, june. 21. the cjeu has recognised that measures that serve the objective of safeguarding an appropriate transmission of monetary policy are likely both to preserve the singleness of monetary policy and to contribute to its primary objective of maintaining price stability. see case c - 62 / 14, gauweiler v deutscher bundestag, ecli : eu : c : 2015 : 400, para 50. 22. see schnabel, i. ( 2021a ), op. cit. 23. on 4 february 2021, the ecb issued a press release to announce that the eurosystem aims to start making annual climate - related disclosures for its non - monetary policy portfolios within the next two years, using the recommendations of the task force on climate - related financial disclosures ( tcfd ) as the initial framework. several eurosystem central banks already make climate - related disclosures for some of their non - monetary policy portfolios. 24. the speech by frank elderson at the recent green swan conference hosted by the bank for international settlements ( bis ) highlights the important role of the ngfs in coordinating central banks ’ work on climate change. see elderson, f. ( 2021 ), “ the embrace of the horizon : forcefully moving with the changing tide for climate action in financial sector policies ”, 3 june. 25. on 22 september 2020, the ec

in its many facets. the situation truly explains many countries ’ challenges including indonesia. in this regard, bank indonesia cannot solely rely on the policy rate as a single monetary policy instrument. in fact, we employ a variety of policy instruments which we call “ the policy mix. ” the “ policy mix ” consists of ( a ) policy rate to anchor inflation expectation complemented by ( b ) exchange rate flexibility to lessen pressure on external sector, ( c ) capital flows management to mitigate short - term excessive volatility, ( d ) macroprudential measures to manage procyclicality, and ( e ) we also continue to strengthen policy coordination with the government and ensure good communication to the public. this year the policy mix focuses on maintaining macroeconomic and financial system stability, while stimulating economic momentum. in the monetary sector, gradual monetary easing remains consistent with efforts to maintain macroeconomic and financial system stability. such policy is supported by measures to maintain exchange rates in line with economic fundamental, strengthen the position of reserve assets and manage flows of foreign capital. bank indonesia also maintains accommodative macroprudential policy, while continuing the effort of financial market deepening. in terms of macroprudential policy, bank indonesia has been implementing a number of regulations, namely, the loan to deposits ratio ( ldr ) linked to the reserves requirement ( rr ) and loan - to - value ( ltv ) ratio on property loans and automotive loans. we adjust the rate according to the need of real sector. distinguished guests, ladies and gentlemen, in the midst of continuing global challenges, bank indonesia always strives to advance its central banking practices, particularly its policy frameworks. in order to improve the effectiveness of monetary policy transmission, bank indonesia has reformulated the policy rate from the bi rate into the 7 - day ( reverse ) repo rate, which will become effective on august 19, 2016. such enhancement does not imply a change in the prevailing monetary policy stance. during the transition period prior to august 19, 2016, the bi rate remains as bank indonesia ’ s policy rate. within that timeframe, bi has started to announce bi 7 - day repo rate as part of the term structure. the enhancement of monetary operation framework has three objectives. first, to improve the policy signaling of policy rate as primary reference for interest rates in the financial market. second, to strengthen the effectiveness of monetary policy transmission through its stronger impact on short term money market rates and bank rates