BI Boss Reveals Inter-National Economic Fragment Hambut World Growth

JAKARTA - Bank Indonesia Governor Perry Warjiyo projects that the global economy will still face pressure in the 2025-2026 period and this condition is exacerbated by fragmentation of growth between countries which creates high uncertainty in the global market.

According to him, throughout 2025 to 2026, the world economy will still be filled with great uncertainty. This is due to the new tariff policy implemented by the United States government and the continued global geopolitical tensions.

Perry said the combination of these two factors had an impact on slowing economic activity, weakening growth, and increasing volatility in the international financial market.

He explained that in early April 2025 the US government implemented a reciprocal tariff policy which initially covered 44 countries, then expanded to 70 countries. The policy imposes high tariffs not only on China, Canada, Mexico, and the European Union, but also on a number of Asian countries, including Indonesia.

"The tariff policy issued by the United States government has an impact on world trade patterns and also on slowing economic growth," he said during a working meeting with Commission XI of the DPR, Wednesday, November 12.

Perry estimates that the global economy in 2025 will only grow by about 3.1 percent, down from 3.3 percent in 2024. Further weakening is predicted to occur in 2026, with growth of only about 3 percent.

Furthermore, Perry explained that the difference in the rate of growth between countries shows that the global economic dynamics is increasingly divided.

"Economic growth in the United States and China is in a tendency to slow down, while to some countries it is still quite good, such as the European Union and India, but all of its growth is lower in 2025 compared to 2024," he said.

In addition, Perry assessed that the United States tariff policy also slowed the downward trend in global inflation.

"The tariff policy also affects the slower trend of decreasing world inflation, which until this year's decline was quite fast but then reversed, then world inflation in fact, several countries including America have an upward trend," he explained.