BI Governor Warns of Prolonged Global Economic Challenges

Five Key Factors Threatening Global Growth

Bank Indonesia Governor Perry Warjiyo has warned that the global economy will continue to face significant challenges through 2027, identifying five critical factors that could impact economic growth. The most pressing concern is the reciprocal tariff policy implemented by the United States, which Warjiyo believes is weakening global trade and multilateralism.

Impact on Global Trade and Multilateralism

According to Warjiyo, the continuation of US tariff policies has led to a decline in global trade and the rise of bilateral and regional agreements at the expense of multilateral cooperation. This shift is seen as a major contributor to the current economic slowdown. The BI Governor emphasized that such protectionist measures not only affect trade volumes but also undermine the global economic order.

Implications for Indonesia's Economy

While the immediate impact of these global challenges on Indonesia's economy is not explicitly stated, Warjiyo's warnings suggest that the country needs to be prepared for potential risks. Bank Indonesia is likely to maintain a cautious stance on monetary policy to mitigate any adverse effects stemming from these global economic developments.