BI Disbursed That Global Financial Market Uncertainty Is Increasing

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo revealed that the uncertainty of the global financial market is increasing along with the risk of slowing down world economic growth.

Perry said the trade policy plan in the United States (US) through rising import rates, commodities, and wider state coverage had led to the risk of increasing world trade fragmentation.

"This development, which is accompanied by an escalation of geopolitical tensions in many countries, has resulted in the growth of the world economy in 2025, which is predicted to slow down to 3.1 percent from 3.2 percent in 2024," he said at a press conference, Wednesday, December 18.

Therefore, Perry said that world inflation increased compared to previous forecasts influenced by supply chain disruptions.

In addition to the US, the decline in the Fed Funds Rate (FFR) is predicted to be slower due to the higher inflation.

Perry menyampaikan, kebijakan fiscal AS yang lebih ekspansif mendorong yield US Treasury tetap tinggi, baik pada tenor jangka pendek maupun jangka panjang.

"The broad strengthening of the US dollar currency continues with the turning of global investor preferences by moving its portfolio allocation back to the US," he explained.

According to Perry, this increases the pressure of weakening various world currencies and restrains foreign capital inflows to developing countries.

"The development of the global economy, which is followed by the high uncertainty of the global financial market, requires a strong policy response to mitigate its negative impact on the economy in developing countries, including Indonesia," he said.