BI Boss: Need Policy Synergy To Encourage National Economy Amid Global Challenges

BI Governor Perry Warjiyo (Photo: Antara)

JAKARTA - Bank Indonesia (BI) said that Indonesia's economic growth needs to be continuously driven amid global uncertainty due to US tariff policies and geopolitical tensions.

BI Governor Perry Warjiyo said economic activity in the second quarter of 2025 showed that the better performance of non-oil and gas exports was influenced by export loading fronts to the US in response to anticipation of exporters against US tariff policies.

Meanwhile, he said that the source of growth from domestic demand through household consumption and investment needs to be increased.

"From the Government side, fiscal policy is adopted to accelerate spending through the provision of 13th salary for State Civil Apparatus (ASN) and transportation subsidies, as well as the thickening of social assistance to Beneficiary Families (KPM)," Perry said at a press conference, Wednesday, June 18.

Meanwhile, from the Bank Indonesia side, Perry said that the reduction in interest rates and easing liquidity was pursued through monetary policy which was accompanied by an increase in macroprudential liquidity incentives to encourage credit - financing to priority sectors.

In the future, he said that Indonesia's economic growth is predicted to improve in the second semester of 2025, and overall, Bank Indonesia predicts economic growth in 2025 to be in the range of 4.6 percent to 5.4 percent.

"Various policy responses need to be strengthened to encourage economic growth both in terms of domestic and external demand," he said.

Perry said that Bank Indonesia will continue to strengthen synergies to encourage economic growth through strengthening the mix of monetary, macroprudential, and payment systems, with fiscal stimulus policies and the real sector of the Government, including the implementation of the Asta Cita program.