BI Boss Says Global Economic Divergence Continues Due To US Import Tariffs

JAKARTA - Bank Indonesia (BI) said that the world's economic divergences continue with global uncertainty that remains high.

BI Governor Perry Warjiyo said the economy of the United States (US) is expected to remain strong, supported by household consumption in line with high wages and productivity as well as improvements in investment.

Meanwhile, the economies of Europe, China, and Japan are still weakly influenced by domestic demand that has not yet been strong and external performance has declined in line with the slowing global economy and the impact of the implementation of the increase in US import rates.

Meanwhile, India's economic expansion is also still being held back due to the fiscal consolidation and unstrong investment process, with this development, world economic growth in 2025 is estimated at 3.2 percent.

"On the other hand, global financial market uncertainty remains high influenced by the United States import tariff policy which is faster and wider than originally estimated and the policy direction of the union's central bank," he said at a press conference, Wednesday, February 19.

Perry menyampaikan, pertumbuhan ekonomi dan inflasi Amerika Utama yang tinggi berdampak pada ekspektasi penurunan Fed Fund Rate (FFR) yang lebih terbatas.

According to him, with the union's more expansive fiscal policy of encouraging yields or Yield Us Treasury remained high even though it declined slightly due to the increasing demand by global investors for the US Treasury.

"This development has led to the high preference of global investors to place their portfolios in the union community," he explained.

Perry said that the US dollar currency index is still high and suppresses various world currencies.

In addition, Perry said that this global uncertainty that remains high continues to require strengthening the policy response that continues to be improved so that it can mitigate the impact of its propagation to maintain stability and encourage domestic economic growth.