BI Warns of Increased Financial Market Uncertainty

Impact of US Government Shutdown

Bank Indonesia Governor Perry Warjiyo has expressed concerns that the recent US government shutdown has led to increased uncertainty in global financial markets. The shutdown, which occurred from October 1 to November 12, 2025, is noted as the longest in US history. Warjiyo highlighted that this development, coupled with the monetary policy direction under US President Donald Trump, has contributed to the heightened uncertainty.

Economic Implications

The prolonged shutdown has resulted in sluggish US economic growth, primarily due to the ongoing impacts of trade tariffs and the temporary cessation of government activities. Warjiyo emphasized that these factors have not only affected economic growth but have also led to weak employment figures in the US. The situation underscores the interconnectedness of global financial markets and the potential ripple effects of significant events in major economies.

BI's Stance and Market Monitoring

Bank Indonesia remains vigilant in monitoring these developments, given their potential implications for Indonesia's financial stability and economic growth. The central bank is closely watching the situation to determine appropriate policy responses should the need arise.