OJK Chairman: Global Economic Growth In 2025 Is Still Sideways

OJK Chairman Mahendra Siregar (Photo: dock. Antara)

JAKARTA - Chairman of the OJK Board of Commissioners Mahendra Siregar said the global economy this year until 2025 tends to be sideways or does not experience significant changes like in previous years.

Mahendra explained this because of the uncertainty that is still high. He said that in 2024 global growth is still accompanied by high divergences or differences.

Furthermore, Mahendra said the self-construction was triggered by inflation in the United States (US), stagflation in European countries, and the economic slowdown in China.

"Global economic growth in 2025 is also estimated to be a sideway, meaning there will be no significant changes compared to previous years," he said in a meeting with Commission XI of the DPR, at the DPR Building, Jakarta, Wednesday, June 26.

Mahendra also said that economic growth in 2025 depends on the development of the economy in China and other monetary countries.

"Depending on developments in China. Then global monetary policy will begin to show convergence with the interest rate that is predicted to fall, but on the other hand, the government space of western countries is mainly," he said.

"And industrial countries face very limited fiscal stimulus, thus forecasting growth that according to the IMF 3.2 percent and the World Bank 2.7 percent," he continued.

Meanwhile, Mahendra continued, the Indonesian economy on the other hand will improve even though this year the export rate is still depressed and the decline in commodity prices to global demand is still happening.

That way, continued Mahendra, the amount of the trade balance deficit will be more influenced by domestic policies considering the global conditions are still severe.

Even so, Mahendra said that in 2025 global demand will be sloping so that food commodity prices can be more stable in line with the end of el nino.

"Domestic monetary policy focuses on maintaining the rupiah. Meanwhile, the performance of the financial sector continues to normalize, but it is necessary to explore the development of credit risk," he said.

Mahendra also said Indonesia's economic growth would increase in line with the government's fiscal expansion.

"Persistence is influenced by structural reforms and maintained inevitation. The Ministry of Finance predicts GDP 5.3 to 5.6 percent, several world institutions predict Indonesia's economic growth of 5.1 percent or 5.0 to 5.2 percent," he explained.