OJK Reveals Stagnant Global Economic Growth

JAKARTA - The Financial Services Authority (OJK) revealed that global economic growth is relatively stagnant and inflation in several developed countries is starting to show a downward trend.

Chairman of the OJK Board of Commissioners, Mahendra Siregar, said that market volatility remains high as the uncertainty of economic and geopolitical policies continues to grow.

"In the United States, solid economic growth with economic activity is supported by domestic consumption. Inflation was at 3 percent in January 2025 and Core CPI or the Consumer Price Index rose to 3.3 percent," he said at a press conference, Tuesday, March 4.

According to him, this shows that price pressures outside of energy and food are still quite high. As well as the labor market remains strong.

In addition, Mahendra said that monetary policy tends to be neutral with the Central Bank of America, where the Fed is expected to only cut the Fed Fund Rate (FFR) 1 to a maximum of 2 times in 2025.

From a geopolitical perspective, Mahendra said efforts to resolve the Ukraine conflict had not found a bright spot even though various meetings had been held at the international level and even the last meeting between the President of the United States and President of Ukraine was clearly not reached an agreement.

In addition, Mahendra said the plan to apply the new United States tariffs to trading partner countries seems increasingly certain to be implemented and this will increase economic uncertainty, especially global trade.

"In China, economic growth tends to survive with CPI being recorded as still low at 0.5 percent and the producer price index continuing to contract. Even though PMI is still in the expansion zone but it has dropped to a level of 50.1 percent below market expectations," he said.

Meanwhile, Mahendra said that the Central Bank of China maintains a reference interest rate that shows a careful approach to easing monetary policy.

"Chigkok is also tightening the Rare Earth Export Regulation which can also have an impact on the development of the global technology industry," he said.