US Resiprocal Tariffs Expand, BI Predicts Global Growth In 2025 To Weaken

Governor of Bank Indonesia Perry Warjiyo (Photo: ANTARA)

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo revealed that the world economy has weakened in line with the widespread implementation of the US reciprocal tariff.

Since August 7, 2025, US reciprocal rates have spread from 44 countries to 70 countries, with rates to some countries such as India and Switzerland higher than the original announcement.

"The implementation of the US reciprocal tariff poses a risk that the world's economic growth will weaken." he said at a press conference, Wednesday, August 20.

He conveyed that BI predicts that world economic growth in 2025 has the potential to be lower than the previous forecast of around 3.0 percent.

According to him, the prospect of US economic growth is predicted to be lower in line with the weakening of domestic demand, and India's economy also weakens as the impact of higher US tariffs suppresses export performance and the manufacturing sector.

Meanwhile, he said that the European, Japanese, and Chinese economies are predicted to be better in line with the lower tariff agreement and the fiscal expenditure toll.

"The lower growth trend and declining inflation have prompted most central banks to pursue accommodative monetary policy, except for Japan," he said.

Menurutnya, di AS, tekanan inflasi yang cenderung menurun mendorong semakin kuatnya ekspektasi penurunan Fed Funds Rate (FFR) ke depan.

Meskipun demikian, Perry menyampaikan dalam jangka pendek ketidakpastian pasar keuangan global masih berlanjut dan perlu tetap diwaspadai guna menjaga ketahanan ekonomi domestik dari dampak rambatan global.

According to him, in the US, inflationary pressures that tend to decline are pushing for stronger expectations of the future decline in the Fed Funds Rate (FFR).

Nevertheless, Perry said that in the short term the uncertainty of the global financial market is still continuing and needs to be watched out for in order to maintain domestic economic resilience from the impact of global propagation.