BI Boss Says Multilateralism Is The Key To Global Economic Growth

Governor of Bank Indonesia (BI) Perry Warjiyo (doc Bank Indonesia)

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo emphasized the importance of multilateralism as the key to driving global economic growth. This statement was made at the International Monetary Fund and World Bank Annual Meeting which took place on October 13 - 18, 2025 in Washington DC, United States.

"Multilateralism is much more effective than unilateralism in encouraging global economic growth and overcoming imbalances," Perry said in a written statement, Sunday, October 19.

During the meeting, it was explained that the global economy showed resilience along with the strengthening of the spirit of multilateralism in maintaining global economic stability. Growth was recorded better than expected, supported by credible policies, increased investment and trade ahead of tariff adjustments, as well as the impact of trade uncertainty which was more limited than estimated.

However, global economic prospects are still overshadowed by the risk of protectionism, labor market inequality, the widespread role of non-bank financial institutions, as well as uncertainty over the impact of Artificial Intelligence on productivity. This situation underscores the importance of adaptive and collaborative international policy responses.

Meanwhile, Perry representing the regional country conveyed three main policy steps taken by Indonesia to maintain economic resilience while ensuring inflation remains on target.

He conveyed first, the implementation of a policy mix that was in harmony between monetary, fiscal, and financial stability.

Second, structural reforms to strengthen growth through downstreaming of natural resources, digitization, financial inclusion, and job creation.

Next, third, strengthening trade and investment cooperation, both in the ASEAN region and with major trading partners such as the US, China, Japan, India, and Europe.

Responding to the dynamics of the global economy, the Ministers of Finance and the Governor of the Central Bank of the G20 emphasized a joint commitment to strengthen multilateral cooperation and credible policies to maintain economic stability by encouraging balanced fiscal and monetary policies, strengthening resilience to financial risks, and continuing reforms for sustainable and inclusive growth.

In particular, the meeting also highlighted efforts to strengthen the international financial architecture through reform of multilateral financial institutions (Multilateral Development Banks/MDBs) and handling debt vulnerabilities. The G20 meeting closed with the submission of the G20 Presidency from South Africa to the United States for 2026.

During the IMF meeting, the Ministers of Finance and Governors of the Central Bank agreed on a global policy agenda, which contained steps to maintain stability and strengthen growth resilience amid high uncertainty.

The IMF recommends four main policy directions. First, each country is encouraged to implement more careful medium-term state financial management in order to strengthen fiscal resilience without sacrificing investment and social spending.

Furthermore, second, the central bank needs to maintain price stability while maintaining independence and transparency. Third, policies in the financial sector need to increase awareness of potential market risks and links between financial institutions.

Next fourth, structural reforms are directed to encourage sustainable growth through improving the business climate, strengthening governance, eradicating corruption, simplifying regulations, developing capital markets, and increasing entrepreneurship and competitiveness.