JAKARTA Single-candidate Governor of Bank Indonesia (BI) Perry Warjiyo said that he was immediately faced with a tough problem when he was first appointed as the leader of the central bank.
He revealed this when he opened the presentation of the fit and proper test for the Governor of BI for the period 2023-2028 at the DPR.
"In 2018, you and your mother agreed to us (to become the Governor of BI) and the oath of the Supreme Court after the President was enacted, we did not have a honeymoon at that time. Because the world was in turmoil in 2018 with the trade wars between China and America," he said at the Senayan Parliament Complex, Jakarta on Monday, March 20.
Perry explained that the pressure that arose was not only due to the increase in the US interest rate (The Fed Fund Rate) which had increased nine times since 2015.
This causes capital outflows and threats of weakening the exchange rate. Those are some of the threats of the monetary crisis that occur," he said.
Furthermore, Perry explained, how the challenges in the 2020-2022 period were dominated by pandemic factors.
"In this period, the rupiah was under pressure again due to the panic of global investors which caused outflows. Then there were also challenges in the social crisis, the banking and economic crisis, as well as the health and humanitarian crisis," he said.
According to the BI boss, the challenge currently being faced is global turmoil due to the war that is taking place in Ukraine.
This is coupled with China-American trade war resurfaced. Then, there is disruption to the global supply chain, which causes several phenomena, such as high inflation, slow economic growth, and a strengthened US dollar," he said.
For information, Perry Warjiyo is currently the Governor of BI who was inaugurated in 2018.
If elected, Perry will hold the helm of the central bank in two terms until 2028.
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